A bill to amend the Internal Revenue Code of 1954 to permit an individual covered by a private retirement plan to establish a separate individual retirement account or deduct a separate contribution to the plan.

Amends the Internal Revenue Code to allow an individual income tax deduction for amounts paid in cash by or on behalf of an individual to a qualified retirement plan (currently excluded from such deduction) in which such individual was an active participant for any part of the taxable year.

Defines a qualified retirement plan to include: (1) a private tax-exempt pension, profit-sharing, or stock bonus plan; (2) an employee annuity plan; (3) a qualified bond purchase plan; or (4) a specified type of pension plan provided for employees of life insurance companies.