[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.404(a)(8)-1T]

[Page 444]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.404(a)(8)-1T  Deductions for plan contributions on behalf of 
self-employed individuals. (Temporary)

    Q: How does the amendment to section 404(a)(8)(D), made by section 
713(d)(6) of the Tax Reform Act of 1984 (TRA of 1984), affect section 
404(a)(8)(C)?
    A: In applying the rules of section 404(a)(8)(C), the Service will 
treat the amendment to section 404(a)(8)(D) as also having been made to 
section 404(a)(8)(C), pending enactment of technical corrections to TRA 
of 1984. The effect of treating the amendment as having also been made 
to section 404(a)(8)(C) is to increase the amount of contributions on 
behalf of a self-employed individual that will be treated as satisfying 
section 162 or 212. Generally, therefore, a contribution on behalf of a 
self-employed individual is treated as satisfying section 162 or 212 if 
it is not in excess of the individual's earned income for the year, 
determined without regard to the deduction allowed by section 404 for 
the self-employed individual's contribution.

[T.D. 8073, 51 FR 4321, Feb. 4, 1986]