George and Elam Campbell - Page 16

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            sufficient to override the literal language of the controlling                               
            statute.                                                                                     
                  In the Employee Retirement Income Security Act of 1974,                                
            (ERISA) Pub. L. 93-406, 88 Stat. 829, Congress enacted section                               
            408(a), which provided for the creation of individual retirement                             
            accounts.  In adopting the individual retirement provisions of                               
            ERISA, the goal of Congress was to create a system whereby                                   
            employees not covered by qualified retirement plans would have                               
            the opportunity to set aside at least some retirement savings on                             
            a tax-sheltered basis.  See H. Rept. 93-807 (1974), 1974-3 C.B.                              
            (Supp.) 236, 361; S. Rept. 93-383 (1973), 1974-3 C.B. (Supp.) 80,                            
            210.  Under the statutory framework thus established, individuals                            
            could obtain a limited deduction for amounts contributed to                                  
            individual retirement accounts while earnings on such amounts                                
            would accrue tax free.  See secs. 219, 408, 409; see also                                    
            Orzechowski v. Commissioner, 69 T.C. 750, 752-753 (1978), affd.                              
            592 F.2d 677 (2d Cir. 1979); H. Rept. 93-807, supra, 1974-3 C.B.                             
            (Supp.) at 361-362; S. Rept. 93-383, supra at 130, 1974-3 C.B.                               
            (Supp.) at 209.  Individuals who were active participants in                                 
            employer-sponsored plans were not permitted to make deductible                               
            IRA contributions because they were already benefitting as                                   
            participants in tax-favored plans.  See sec. 219(b)(2) as                                    
            originally enacted by ERISA sec. 2002, 88 Stat. 958.                                         







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