[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR346.5]

[Page 285]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 346--REGULATIONS GOVERNING UNITED STATES INDIVIDUAL RETIREMENT BONDS--Table of Contents
 
Sec. 346.5  Limitation on holdings.

    (a) Except as provided in paragraph (b) of this section, the amount 
of Individual Retirement Bonds which may be registered in any one 
individual's name is limited to the amount for which an annual deduction 
may be taken under either section 219 or 220 of the Internal Revenue 
Code.\1\ These limitations are as follows:
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    \1\ Note: Under the Internal Revenue Code, bonds issued during any 
given year or within 45 days thereafter may be deducted in that year.
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    (1) In the case of an individual electing to deduct his or her bond 
purchase under section 219, the face amount of bonds purchased for tax 
deduction in any given year may not exceed 15 percent of the 
individual's earned income for that year or $1,500, whichever is less.
    (2) In the case of an individual electing to deduct his or her bond 
purchases under section 220, the total face amount of bonds purchased 
for tax deduction in any given year in the name of the individual and in 
the name of his or her nonworking spouse, may not exceed 15 percent of 
the working spouse's earned income for that year or $1,750, whichever is 
less.\2\
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    \2\ Note: Code section 220 requires, in effect, that the total IRA 
contributions in each spouse's name to be deducted in any one year be in 
equal amounts. While it is permissible for an eligible married couple to 
utilize several different forms of IRA investments within the same year, 
this means that couples investing solely in bonds must purchase equal 
amounts of bonds in each spouse's name.
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    (b) The above limitations do not apply to rollover bond purchases, 
as described in sections 402(a)(5), 403(a)(4), or 408(d)(3) of the 
Internal Revenue Code.

(26 U.S.C. 220 and 31 U.S.C. 757)

[42 FR 37520, July 21, 1977]