IRA Work and Savings Incentive Act of 1980

IRA Work and Savings Incentive Act of 1980 - Amends the Internal Revenue Code to allow individual taxpayers an income tax credit equal to 50 percent of their contributions to individual retirement accounts for a taxable year. Limits the amount of such credit to the lesser of $3,000 or the compensation includible in the taxpayer's gross income for the taxable year. Specifies that no credit may be allowed for contributions made to the account of any individual who has reached age 59 1/2. Permits certain limited amounts of employer contributions to a simplified employee pension plan to qualify for the credit.

Increases the dollar limitation on the income tax deduction for contributions to pension plans for the self-employed from $7,500 to $10,000.

Increases the amount of the income tax deduction for contributions to an individual retirement account to the lesser of $3,000 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.