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TITLE 26-INTERNAL REVENUE CODE SECTION REFERRED TO IN OTHER SECTIONS This section Is referred to in sections 62, 220, 408, 409, 3401, 4973, 6047 of this title; title 29 section 1309. § 220. Retirement savings for certain married Individ- uals (a) Deduction allowed In the case of an individual, there is allowed as a deduction amounts paid in cash for a tax- able year by or on behalf of such individual for the benefit of himself and his spouse- (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 bondidescribed 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)) 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) Limitation and restrictions (1) Maximum deduction The amount allowable as a deduction under subsection (a) to an individual for any taxable year may not exceed- (A) twice the amount paid to the account or annuity, or for the bond, established for the individual or for his spouse to or for which the lesser amount was paid for the taxable year, (B) an amount equal to 15 percent of the compensation includible in the individual's gross income for the taxable year, or (C) $1,750, whichever is the smallest amount. (2) Alternative deduction No deduction is allowed under subsection (a) for the taxable year if the individual claims the deduction allowed by section 219 for the taxable year. (3) Coverage under 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 or his spouse was an active partici- pant 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 in section 403(a), (iII) a qualified bond purchase plan de- scribed in section 405(a), or (iv) a plan established for its employees by the United States, by a State or politi- cal subdivision thereof, or by an agency or instrumentality of any of the foregoing, or (B) amounts were contributed by his em- ployer, or his spouse's employer, for an an- nuity contract described in section 403(b) (whether or not his, or his spouse's, rights in such contract are nonforfeitable). (I) Contributions after age 701/2 No deduction is allowed under subsection (a) with respect to any payment which is made for a taxable year of an individual if either the individual or his spouse has at- tained age 70'/2 before the close of such tax- able year. (5) Recontributed amounts No deduction is allowed under this section with respect to a rollover contribution de- scribed in section 402(a)(5), 403(a)(4), 408(d)(3), or 409(b)(3)(C). (6) Amounts contributed under endowment con. tract In the case of an endowment contract de- scribed in section 408(b), no deduction is al- lowed under subsection (a) for that portion of the amounts paid under the contract for the taxable year properly allocable, under regula- tions prescribed by the Secretary, to the cost of life insurance. (7) Employed spouses No deduction is allowed under subsection (a) with respect to a payment described in subsection (a) made for any taxable year of the individual if the spouse of the individual has any compensation (determined without regard to section 911) for the taxable year of such spouse ending with or within such tax- able year. (c) Definitions and special rules (I) Compensation For purposes of this section, the term "com- pensation" includes earned income as defined in section 401(c)(2). (2) Married individuals This section shall be applied without regard to any community property laws. (3) Determination of marital status The determination of whether an individual is married for purposes of this section shall be made in accordance with the provisions of section 143(a). (4) Time when contributions deemed made For purposes of this section, a taxpayer shall be deemed to have made a contribution on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than 45 days after the end of such taxable year. (5) Participation in governmental plans by certain individuals A member of a reserve component of the armed forces or a volunteer firefighter is not considered to be an active participant in a plan described in subsection (b)(3)(A)(iv) if, under section 219(c)(4), he is not considered to be an active participant in such a plan. (Added Pub. L. 94-455, title XV, § 1501(a), Oct. 4, 1976, 90 Stat. 1734.) PRIOR PROVISIONS A prior section 220, 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 Page 201 § 220