Individual Retirement Savings Act of 1980

Individual Retirement Savings Act of 1980 - Amends the Internal Revenue Code to increase the allowable amount of the income tax deduction for contributions to an individual retirement account (IRA) to the lesser of $2,000 or the amount of an employee's taxable compensation. Permits active participants in tax-qualified retirement plans, tax-sheltered annuities, or governmental plans to claim an income tax deduction for contribution to an IRA up to a maximum of $500 for the taxable year. Disqualifies self-employed individuals and shareholder employees for the retirement savings deduction.