A bill to amend the Internal Revenue Code of 1954 to permit the tax-free rollover of certain benefits received by law enforcement officers on separation from service by increasing the limitations on the deduction for retirement savings.

Amends the Internal Revenue Code to increase the allowable amount of the income tax deduction for contributions to an individual retirement account by the amount of any qualified separation benefit paid to a law enforcement officer to the extent such benefit is includible in the gross income of such officer for the taxable year.

Defines "qualified separation benefit" as the amount: (1) which becomes payable on account of the recipient's separation from service as a law enforcement officer; and (2) which is attributable to accumulated sick leave or vacation or holiday pay (or similar amounts) earned for service as a law enforcement officer.