A bill to amend the Internal Revenue Code of 1986 to simplify the antidiscrimination rules applicable to certain employee benefit plans.

Amends the Tax Reform Act of 1986 to delay until 1990 the effective date of the nondiscrimination requirements for benefits provided under certain employee benefit plans.

Amends the Internal Revenue Code to revise such nondiscrimination requirements by requiring the taxation of the excess health benefits of a highly compensated employee. Excludes from such requirements certain students, certain elderly, and prisoners.

Imposes an excise tax on employers or employer plans if an employee benefit plan fails to satisfy certain administrative requirements.

Restores prior law with respect to nondiscrimination requirements of group-term life insurance plans.

Authorizes an employer to elect to use current nondiscrimination rules for years beginning 1990 or 1991 as they apply to health plans and dependent care assistance programs.

Revises provisions relating to the nontaxable benefits of employers of leased employees, dependent care assistance, and group-term life insurance provided to highly compensated employees.