Page 199

TITLE 26-INTERNAL PEVENUE CODE the amount of any reimbursement in kind of moving expenses made by the Secrel ary concerned; and (3) permit any taxpayer who was a member of the armed forces to deduct any amount paid by him as moving expenses in connection with any move re- quired by the Secretary concerned, in excess of any re- imbursement received for such expenses, without regard to the provisions of subsec. (c) of this section, to the extent it was otherwise deductible under this section. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 62, 1001, 1016, 3121, 3306, 3401 of this title; title 42 section 409. § 218. Contributions to candidates for public office (a) Allowance of deduction . In the case of an individual, there shall be al- lowed as a deduction any political contribution (as defined in section 41(c)(1)) or newsletter fund contribution (as defined In section 41(c)(5)) payment of which is made by such in- dividual within the taxable year. (b) Limitations (1) Amount The deduction under subsection (a) shall not exceed $100 ($200 in the case of a joint return under section 6013). (2) Verification The deduction under subsection (a) shall be allowed, with respect to any political contri- bution or newsletter fund contribution, only if such contribution is verified in such manner as the Secretary shall prescribe by regulations. c) Election to take credit in lieu of deduction This section shall not apply in the case of any taxpayer who, for the taxable year, elects to take the credit against tax provided by section 41 (relating to credit against tax for contribu- tions to candidates for public office). Such elec- tion shall be made in such manner and at such time as the Secretary shall prescribe by regula- tions. (d) Cross reference For disallowance or deduction to estates and trusts, see section 642(i). (Added Pub. L. 92-178, title VII, § 702(a), Dec. 10, 1971, 85 Stat. 561, and amended Pub. L. 93- 625, §§ 11(d), 12(b), Jan. 3, 1975, 88 Stat. 2120: Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) PRIOR PROVISIONS A prior section 218, act Aug. 16, 1954, ch. 736, 68A Stat. 72, § 217, renumbered § 218, Feb. 26, 1964, Pub. L. 88-272, title II, § 213(a)(1), 78 Stat. 50, renumbered § 219, Dec. 10, 1971, Pub. L. 92-178, title VII, § 702(a), 85 Stat. 561, renumbered § 220, Sept. 2, 1974, Pub. L. 93-406, title II, § 2002(a)(1), 88 Stat. 958, renumbered § 221, Oct. 4, 1976, Pub. L. 94-455, title XV, § 1501(a), 90 Stat. 1734, relating to cross references concerning deduction for long term capital gains and deductions in respect of a decedent, was redesignated as section 221 of this title by section 1501(a) of Pub. L. 94-455. AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" in subsecs. (b)(2) and (c) following "Secretary". 1975-Subsec. (a). Pub. L. 93-625, § 11(d)(1), provided for allowance of deduction for newsletter fund contri- bution as defined in section 41(c)(5) of this title. Subsec, (b)(1). Pub. L. 93-625, § 12(b), doubled amount of maximum deduction. Subsec. (b)(2). Pub. L. 93-625, § 11(d)(2), inserted "or newsletter fund contribution" after "political contri- bution" where first appearing and substituted "such contribution" for "such political contribution". EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 93-625 applicable to any con- tribution payment of which was made after Dec. 31, 1974, in taxable years beginning after such dite, see sections 11(f) and 12(c) of Pub. L, 93-625, set out as Ef- fective Date of 1975 Amendment notes under section 41 of this title. EFFECTIVE DATE Section applicable to taxable years ending after Dec. 31, 1971, but only with respect to political contribu- tions, payment of which is made after such date, see section 703 of Pub. L. 92-178, set out as an Effective Date note under section 41 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 642 of this title. § 219. Retirement savings (a) Deduction allowed In the case of an individual, there is allowed as a deduction amounts paid in cash for the taxabie year by or on behalf of such individual for his benef it- (1) to an individual retirement account de- scribed in section 408(a), (2) for an individual retirement annuity de- scribed in section 408(b), or (3) for a retirement bond described in sec- tion 409 (but only if the bond is not redeemed within 12 months of the date of its issuance). For purposes of this title, any amount paid by an employer to such a retirement account or for such a retirement annuity or retirement bond constitutes payment of compensation to the employee (other than a self-employed indi- vidual who is an employee within the meaning of section 401(c)(1) 1 includible in his gross income, whether or not a deduction for such payment is allowable under this section to the employee after the application of subsection (b). (b) Limitations and restrictions (1) Maximum deduction The amount allowable as a deduction under subsection (a) to an individual for any taxable year may not exceed an amount equal to 15 percent of the compensation includible in his gross income for such taxable year, or $1,500, whichever is less. (2) Covered by certain other plans No deduction is allowed under subsection (a) for an individual for the taxable year if for any part of such year- (A) he was an active participant in- (I) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), (ii) an annuity plan described tri section 403(a), (iII) a qualified bond purchase plan de- scribed in section 405(a), or Probably should be followed by a closing parenthe- sis. Page 199