A bill to amend section 3041 of the Internal Revenue Code.

Provides an exception for income tax withholding purposes for any renumeration paid to or on behalf of an employee or his beneficiary under or to an annuity plan, which at the time of such payment is a plan purchased by tax-exempt organizations or funds organized for religious, charitable, scientific, literary, or educational purposes, or by public schools. (Adds 26 U.S.C. 3401(a)(12))