A bill to amend the Internal Revenue Code of 1986 to permit tax-exempt organizations to establish section 401(k) plans.

Amends the Internal Revenue Code to accord income tax treatment as a qualified cash or deferred arrangement (401(k) plan) to a plan of a tax-exempt organization if such a plan meets the pertinent criteria and is part of a: (1) profit-sharing or stock bonus plan (including an employee stock ownership plan); (2) pre-ERISA money purchase plan; or (3) rural electric cooperative plan.