A bill to amend the Internal Revenue Code of 1954 to increase the limitations on the deduction for retirement savings, to allow such deduction to individuals covered by employer pension plans, and to provide for inflation adjustments in the limitations on such deduction.

Amends the Internal Revenue Code to increase to $2,500 ($3,000 for spousal IRAs) the dollar limitation on the income tax deduction for retirement savings contributions. Permits participants in tax-qualified employer pension plans to claim retirement savings deductions up to $1,500 ($1,750 for spousal IRAs).

Requires annual inflation adjustments to the dollar amount of the retirement savings deduction.