Retirement Incentives Savings Tax Act of 1981

Retirement Incentives Savings Tax Act of 1981 - Amends the Internal Revenue Code to allow individual taxpayers a nonrefundable income tax credit equal to 50 percent of their qualified contributions to individual retirement accounts or employer or government pension plans for a taxable year. Limits the amount of such credit to the lesser of $2,000 or the compensation includible in the taxpayer's gross income for the taxable year. Specifies that no credit may be allowed for such contributions made to the account of any individual who has reached age 59 1/2 or for employer contributions to simplified employee pensions.

Limits the amount of such credit for an individual who has paid any designated voluntary employee contributions to the lesser of $2,000 or the compensation includible in the taxpayer's gross income for the taxable year reduced by the amount of such designated voluntary employee contributions.

Increases the amount of the income tax deduction for contributions to an individual retirement account to the lesser of $2,000 or the taxpayer's compensation which is includible in his gross income.

Requires an individual to be between the ages of 59 1/2 and 70 1/2 in order for contributions made to such individual taxpayer's retirement account to qualify for the retirement savings tax deduction.

Provides special rules with respect to both the retirement savings credit and the deduction for certain divorced and married individuals.