In Uncategorized on 03/02/2023 at 17:29

Froilan Nigel Villahermosa, Docket No. 6675-19S, filed 3/2/23, doubtless contributed to his employer’s Thrift Savings Plan, which he made with post-tax dollars. But the Section 219 deduction he seeks in respect of same fails.

STJ Diana L (“Sidewalks of New York”) Leyden tells us why in this off-thep-bencher.

“An IRA and a Thrift Savings Plan (TSP) are separately defined by the Internal Revenue Code. Section 7701(a)(37) provides that an IRA means an individual retirement account described in section 408(a). Section 7701(j)(1) provides that TSP is treated as a trust described in section 401(a). To prove his entitlement to claim a deduction for qualified retirement contributions, Petitioner provided a TSP statement detailing his contributions to the TSP in [Year at Issue]. However, contributions to a TSP are not considered qualified retirement contributions as discussed above and thus not eligible to [sic] the claimed IRA contribution deduction. See section 7701(j)(1)(C).” Transcript, at pp. 8-9.

Froilan also has the not-uncommon timing problem with his Section 25A American Opportunity credit. He paid in one year for qualifying expenses applicable to the next. He claimed he made other payments, but had no proof. Bursars’ receipts are sometimes hard to interpret.


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