PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 107 " (2) DEPENDENTS AND FULL-TIME STUDENTS NOT ELIGIBLE.— The term 'eligible individual' shall not include— "(A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins, and "(B) any individual who is a student (as defined in section 151(c)(4)). " (d) QUALIFIED RETIREMENT SAVINGS CONTRIBUTIONS. —For purposes of this section— "(1) IN GENERAL.—The term 'qualified retirement savings contributions' means, with respect to any taxable year, the sum of— "(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, "(B) the amount of— "(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and , "(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and "(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)). " (2) REDUCTION FOR CERTAIN DISTRIBUTIONS.— "(A) IN GENERAL.—The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of— "(i) any distribution from a qualified retirement plan (as defined in section 4974(c)), or from an eligible deferred compensation plan (as defined in section 457(b)), received by the individual during the testing period which is includible in gross income, and "(ii) any distribution from a Roth IRA or a Roth account received by the individual during the testing period which is not a qualified rollover contribution (as defined in section 408A(e)) to a Roth IRA or a rollover under section 402(c)(8)(B) to a Roth account. "(B) TESTING PERIOD.— For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes— "(i) such taxable year, "(ii) the 2 preceding taxable years, and "(iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year. "(C) EXCEPTED DISTRIBUTIONS.— There shall not be taken into account under subparagraph (A)— "(i) any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4), and "(ii) any distribution to which section 408A(d)(3) applies. " (D) TREATMENT OF DISTRIBUTIONS RECEIVED BY SPOUSE OF INDIVIDUAL. — For purposes of determining distributions received by an individual under subparagraph 89-1940 -03 -5 QL3Part1
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