A bill to amend the Internal Revenue Code of 1986 to permit rural telephone cooperatives to have qualified cash or deferred arrangements, and for other purposes.

Amends the Internal Revenue Code to accord income tax treatment as a qualified cash or deferred arrangement (401(k) plan) to a defined contribution plan established and maintained by a rural telephone cooperative. (Under current law, rural electric cooperatives, but not rural telephone cooperatives, are permitted to offer such plans to their employees.) Applies to such plans the same accounting rules as are currently applied to the plans of rural electric cooperatives.