Individual Retirement Benefits Act

Individual Retirement Benefits Act - Establishes minimum standards for participation and for vesting of benefits under pension and profitsharing plans. Provides that no employee may be excluded from participation in an employer-sponsored plan if he has attained the age of 30 years and has been an employee for at least three years, except an employee who is within five years of retirement age. Adopts a vesting standard under which every pension must be half vested when an employee's age plus the number of years he has participated in the plan equals 50. Provides that the remaining portion of his pension must vest ratably over the next five years.

Grants the Secretary regulatory authority to require more restrictive rules for plans where inadequate vesting and eligibility provisions would be likely to result in discrimination prohibited by existing law.

Grants tax deductions under the Internal Revenue Code to individuals for personal savings for retirement. Provides that the deductible amount is 20 percent of the individual's earned income for the year, but not more than $1,500. Allows a tax deduction for employee contributions to employer-sponsored plans and, in the case of an individual who is not covered by employer-sponsored plans (or who is inadequately covered by an employer-sponsored plan), a deduction is allowed for amounts set aside by the individual for his own retirement in an individual retirement account. Provides that amounts held in individual retirement accounts would be allowed to earn tax-free income.

Increases the deductible contribution which may be made on behalf of self-employed individuals and shareholder-employees of electing small business corporations to a retirement plan which covers themselves and their employees to 15 percent, or $7,500, whichever is less.