Common use of Applicable Amount Clause in Contracts

Applicable Amount. The applicable amount is determined under (i) or (ii) below: i. If the individual is under age 50, the applicable amount is: • $3,000 for any taxable year beginning in 2002 through 2004, • $4,000 for any taxable year beginning in 2005 through 2007, and • $5,000 for any taxable year beginning in 2008 and years thereafter, or • the maximum amount allowable as a deduction under section 219 of the Code, the provisions of which are herein incorporated by reference, with respect to such Individual for such taxable year. ii. If the individual is 50 or older, the applicable amount is: • $3,500 for any taxable year beginning in 2002 through 2004, • $4,500 for any taxable year beginning in 2005, • $5,000 for any taxable year beginning in 2006 through 2007, and • $6,000 for any taxable year beginning in 2008 and years thereafter, or • the maximum amount allowable as a deduction under section 219 of the Code, the provisions of which are herein incorporated by reference, with respect to such individual for such taxable year. iii. After 2008, the limits in paragraph (b)(i) and (ii) above will be adjusted by the Secretary of the Treasury for cost-of-living increased under section 219(b)(5)(C) of the Code. Such adjustments will be in multiples of $500.