IRA Equity Act of 2005 - Amends the Internal Revenue Code to allow taxpayers to: (1) include wage replacement income in computing the allowable tax deduction for contributions to retirement savings accounts; and (2) elect to include certain unused income from prior taxable years in computing such tax deduction. Defines "wage replacement income" as amounts received by disabled individuals, unemployment compensation, workers' compensation, or other income deemed wage replacement income under Treasury regulations.