A bill to amend the Internal Revenue Code of 1954 to increase the allowable contributions to individual retirement plans and to allow employees a deduction for savings contributions to employer retirement plans or to individual retirement accounts.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to increase the maximum amount of the deduction allowed for contributions to specified individual retirement accounts. Eliminates the restriction prohibiting active participants in specified other plans from taking such a deduction. Revises the formula for the determination of amounts considered "excess contributions." Increases the amount which may be accepted by an individual retirement account in any taxable year. Permits the acceptance of excess contributions which, aggregated with those for prior taxable years, exceed a specified amount. Revises the procedure by which amounts or annuities paid or distributed become taxable. Excludes from consideration as early distributions requiring additional tax amounts withdrawn in connection with specified educational expenses or specified expenses in connection with the purchase of a first dwelling. Excludes from gross income, for purposes of the tax treatment of annuities, contributions made to individual retirement accounts allowed as deductions for retirement savings. Removes the exclusion from the gross estate, for purposes of the estate tax, of annuities receivable under specified individual retireme…