Retirement Benefits Act

Retirement Benefits Act - Allows a tax deduction, under the Internal Revenue Code, for amounts paid during the taxable year by an individual to a qualified retirement account, to an employers' trust, to purchase an annuity contract or to a qualified bond purchase plan.

Provides that the amount allowable as a deduction shall not exceed 15 percent of so much of the taxpayers earned income for such year as does not exceed $5,000.

Reduces the deduction allowable under this Act by the amount of any contributions made on behalf of the taxpayer by his employer during the taxable year to such retirement plan.

States that the limitation provided by this subsection in the case of a married individual shall be determined without regard to the earned income of his spouse and without regard to contributions made on behalf of his spouse by the spouse's employer.

States that if any person, other than by reason of a disability, receives distributions from a qualified individual retirement account before he or his spouse attains the age of 59 1/2 years, such distribution shall be includible in the taxpayers gross income. Imposes a penalty of 30 percent on any amount required to be included in gross income under this section.

Imposes an excise tax of 10 percent for each taxable year on the excessive accumulation (as defined by this Act) of assets in any individual retirement account.

States that such tax shall not apply to any taxable year prior to the taxable year in which any individual who contributed to the plan attains the age of 70 1/2 years.