                        T.C. Memo. 2003-157



                      UNITED STATES TAX COURT



                 SUSAN L. ROSETTI, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 11514-01.              Filed May 28, 2003.


     Susan L. Rosetti, pro se.

     Stephen R. Takeuchi, for respondent.



             MEMORANDUM FINDINGS OF FACT AND OPINION


     FOLEY, Judge:   By notice of deficiency dated June 22, 2001,

respondent determined a $574 deficiency relating to petitioner’s

1998 Federal income tax return.   After concessions, the sole

issue for decision is whether petitioner is entitled to a $2,000

Individual Retirement Account (IRA) deduction relating to 1998.
                                - 2 -

                          FINDINGS OF FACT

     On her timely filed 1998 Federal income tax return,

petitioner reported $43,209 in wages, claimed a $2,000 IRA

deduction, and elected married filing separately status.   On June

22, 2001, respondent disallowed the deduction and determined a

$574 deficiency.

     During 1998, petitioner was a real estate agent and an

employee of the State of Florida, Department of Transportation.

She had a defined benefit plan sponsored by the Florida

Retirement System (FRS plan),1 which required employers to pay

all funding costs and provided that employees’ benefits vest in

10 years.

     In 1998, petitioner made a $2,000 contribution to a Keogh

plan that was established prior to her employment with the State

of Florida.

     Petitioner resided in Tampa, Florida, at the time the

petition was filed.

                               OPINION

     Generally, a taxpayer is entitled to deduct the amount

contributed to an IRA.   Sec. 219(a); sec. 1.219-1(a), Income Tax

Regs.    The deduction in any taxable year, however, may not exceed

the lesser of $2,000 or an amount equal to the compensation


     1
        Under the FRS plan, participation, as of the date of
employment, is compulsory for those employed on or after December
1, 1970. Fla. Stat. Ann., sec. 121.051(1)(a) (West 2002).
                                 - 3 -

includable in the taxpayer’s gross income for such taxable year.

See sec. 219(b)(1).   In addition, the amount of the deduction is

limited where the taxpayer was, for any part of the taxable year,

an "active participant" in a retirement plan qualified under

section 401(a)2 or a plan established for its employees by the

United States, by a State or political subdivision thereof, or by

any agency or instrumentality of any of the foregoing.     Sec.

219(g)(1), (5)(A)(i), (iii).    No deduction is allowed for an

active participant who is married filing a separate return and

whose adjusted gross income exceeds $10,000.    See sec.

219(g)(3)(iii).

     Petitioner contends that she is entitled to a $2,000 IRA

deduction.   We disagree.   Petitioner made a contribution to a

Keogh plan rather than an IRA.    Although taxpayers with “earned

income” from self-employment are eligible to deduct contributions

made to a qualified Keogh plan,3 petitioner, in 1998, received

wages from the Department of Transportation and interest income

but did not receive any earned income from self-employment.       See

secs. 401(c)(1) and (2)(A), 404(a)(8)(C), and 1402(a), (c).

Accordingly, petitioner’s contributions to the Keogh plan are not


     2
        Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
     3
        Keogh plans are retirement plans for self-employed
individuals.
                                 - 4 -

tax deductible.   Even if the contribution had been made to an

IRA, petitioner would not be entitled to a deduction because she

was married filing a separate return, an active participant in

the FRS plan, and earned more than $10,000 during 1998.       Sec.

219(g).

     Contentions we have not addressed are irrelevant, moot, or

meritless.

     To reflect the foregoing,



                                              Decision will be entered

                                         under Rule 155.
