PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 825 "(ii) In the case of any other taxpayer (other than a married individual filing a separate return): The applicable Tor taxable years beginning in: dollar amount is: 1998 $30,000 1999 $31,000 2000 $32,000 2001 $33,000 2002 $34,000 2003 $40,000 2004 $45,000 2005 and thereafter $50,000. "(iii) In the case of a married individual filing a separate return, zero.". (2) INCREASE IN PHASE-OUT RANGE FOR JOINT RETURNS.— Clause (ii) of section 219(g)(2)(A) is amended by inserting "($20,000 in the case of a joint return for a tsixable year beginning after December 31, 2006)". (b) LIMITATIONS FOR ACTIVE PARTICIPATION NOT BASED ON SPOUSE'S PARTICIPATION.— Section 219(g) (relating to Hmitation on deduction for active participants in certain pension plans) is amended— (1) by striking "or the individual's spouse" in paragraph (1), and (2) by adding at the end the following new paragraph: "(7) SPECIAL RULE FOR CERTAIN SPOUSES.— In the case of an individual who is an active participant at no time during any plan year ending with or within the taxable year but whose spouse is an active participant for any part of any such plan year— "(A) the applicable dollar amount under paragraph (3)(B)(i) with respect to the taxpayer shall be $150,000, and "(B) the Emiount applicable under paragraph (2)(A)(ii) shall be $10,000.". (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 219 note, shall apply to taxable years beginning after December 31, 1997. SEC. 302. ESTABLISHMENT OF NONDEDUCTIBLE TAX-FREE INDIVID- UAL RETIREMENT ACCOUNTS. (a) IN GENERAL. —Subpart A of part I of subchapter D of chapter 1 (relating to pension, profit-sharing, stock bonus plans, etc.) is amended by inserting after section 408 the following new section: '<SEC. 408A. ROTH IRAS. "(a) GENERAL RULE. — Except as provided in this section, a Roth IRA shall be treated for purposes of this title in the same manner as an individual retirement plan. "(b) ROTH IRA. —For purposes of this title, the term 'Roth IRA' means an individual retirement plan (as defined in section 7701(a)(37)) which is designated (in such manner as the Secretary may prescribe) at the time of establishment of the plan as a Roth IRA. Such designation shall be made in such manner as the Secretary may prescribe. " (c) TREATMENT OF CONTRIBUTIONS. — "(1) No DEDUCTION ALLOWED. —N O deduction shall be allowed under section 219 for a contribution to a Roth IRA.
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