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Petitioners also contend that even if Mrs. Brandkamp were an
active participant in the MetLife plan, current section 219(g)(7)
serves to immunize Mr. Brandkamp from disallowance of the
deduction claimed for the contribution to his IRA. We disagree.
Current section 219(g)(7) provides a special rule for a
spouse who is not an active participant in a qualified pension
plan. Under this special rule, the deduction for such spouse’s
IRA contribution is reduced only when the spouses’ modified AGI
exceeds $150,000. Although petitioners’ modified AGI was only
half that amount, section 219(g)(7) does not serve to allow the
deduction in issue because this section is only applicable to tax
years beginning after December 31, 1997. See Internal Revenue
Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L.
105-206, secs. 6005(a)(1), 6024, 112 Stat. 685, 796, 826,
amending sec. 301(b) and (c); Taxpayer Relief Act of 1997 (TRA
‘97), Pub. L. 105-34, 111 Stat. 788, 825.
Finally, petitioners appear to argue that the foregoing
amendment was merely declaratory of existing law. However, any
such contention is clearly belied by the effective date
provisions of TRA ‘97, sec. 301(c), 111 Stat. 825, and the RRA
1998, sec. 6024, 112 Stat. 826. In addition, the legislative
7(...continued)
in a qualified retirement plan, does not violate the Due Process
Clause of the Fifth Amendment to the Constitution).
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