A bill to amend the Internal Revenue Code of 1954 to allow certain employees covered by employer retirement plans a deduction for contributions to such plans or to individual retirement plans.

Amends the Internal Revenue Code to allow employees who are participants in tax-qualified employer retirement plans an income tax deduction for contributions to such plans or to individual retirement plans. Limits the amount of such deduction to the lesser of 15 percent of the employee's compensation for the taxable year or $1,500. Disallows such deduction for individuals otherwise claiming a deduction for contributions to retirement savings. Disallows the deduction for contributions to an individual retirement plan if the individual attains the age of 70 1/2 before the close of the taxable year. Excludes from eligibility for the deduction amounts received as compensation by employees while they are participants in a government plan.