- 3 -
was not vested in either of the plans, nor is he entitled to
future benefits from either of the plans.4
Petitioners filed a timely joint Federal income tax return
for 1999 in which they reported total income of $64,776. With
the two unreported income items conceded by petitioners, their
total income for 1999 was $67,638.
On their 1999 tax return, petitioners claimed a deduction of
$4,000 for an IRA contribution of $2,000 by petitioner and an IRA
contribution of $2,000 by petitioner Ingrid I. Castillo. In the
notice of deficiency, respondent disallowed the $2,000 IRA
contribution deduction by petitioner5 on the ground that
petitioner was an active participant in his employer's qualified
plans, and petitioners' joint income for 1999 exceeded the
limitations of section 219(g)(2) and (3) allowing an active
participant in a qualified plan to contribute to an IRA.
In general, a taxpayer is entitled to deduct the amount of a
contribution to an IRA. Sec. 219(a). The amount of an allowable
IRA deduction is provided under section 219(b)(1) and is subject
to a limitation under section 219(g) where the taxpayer is, for
any part of the taxable year, an "active participant" in a
4 The record does not indicate that petitioner made any
contributions to the plans.
5 Respondent agreed that the IRA contribution by
petitioner Ingrid I. Castillo was allowable, and no adjustment
was made in the notice of deficiency with respect to that
contribution.
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Last modified: May 25, 2011