A bill to amend the Internal Revenue Code of 1954 to increase the amount allowable as a deduction for retirement savings and to allow a deduction for retirement savings of individuals covered by certain types of retirement plans.

Amends the Internal Revenue Code to increase the income tax deduction for contributions to retirement savings accounts to $5,000 for taxable years beginning in 1979 with yearly cost-of-living increases for succeeding taxable years. Permits participants in tax-exempt retirement plans, qualified annuity and bond purchase plans, and government retirement plans to claim the same deduction for contributions to retirement savings accounts as non-participants subject to a reduction in the amount of such deduction for any contributions made to such plans in a taxable year.