A bill to amend the Internal Revenue Code of 1954 to provide a basic $5,000 exemption from income tax for amounts received as annuities, pensions, or other retirement benefits.

Provides that gross income during any taxable year for Federal tax purposes does not include any amount received as an annuity, pension or other retirement benefit, so long as the total of such benefits for any one year does not exceed $5,000. (Amends 26 U.S.C. 72(a))