- 4 - IRA deduction. Sec. 219(g)(3)(A). An individual is an active participant in a defined benefit plan if for any portion of the plan year he is not excluded under the eligibility provisions of the plan. Sec. 1.219-2(b), Income Tax Regs. The determination of whether an individual is an active participant shall be made without regard to whether or not such an individual’s rights under a plan are nonforfeitable. Sec. 219(g)(5); Hildebrand v. Commissioner, 683 F.2d 57, 59 (3d Cir. 1982), affg. T.C. Memo. 1980-532; Eanes v. Commissioner, 85 T.C. 168, 170 (1985). If an employee makes “a voluntary or mandatory contribution to * * * [an employer retirement plan] such employee is an active participant in the plan for the taxable year in which such contribution is made.” Sec. 1.219- 2(e), Income Tax Regs. Petitioner concedes that he contributed to a qualified retirement plan in 1997. Under section 219(g), we find that petitioner was an active participant in an employer retirement plan during 1997. Petitioner further asks the Court to correct the rigid requirements in section 219 to comport with what he believes is the legislative intent “to permit citizens to save for their retirement.” Unfortunately for petitioner, the legislative history of section 219 shows that the deduction for contributions to an IRA is to be available only where an individual “does not participate in any other tax-supported retirement plan.” H.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011