To amend the Internal Revenue Code of 1986 to exclude from gross income the gain realized from the sale or exchange of a capital asset used to generate self-employment income if the entire amount of such gain is deposited in an individual retirement account.

Amends the Internal Revenue Code to: (1) exclude from gross income gain from the sale or exchange of a capital asset used to generate self-employment income if the entire amount of such gain is deposited in an individual retirement account; and (2) increase individual retirement account contribution limitations by any such excluded amount which is contributed to such account.