A bill to amend the Internal Revenue Code of 1954 to provide that employees receiving lump sums from tax-free pension or annuity plans on account of separation from employment shall not be taxed at the time of distribution to the extent that an equivalent amount in reinvested in another such plan.

Provides that employees receiving lump sums from pension or annuity plans qualifying for tax-free treatment under the Internal Revenue Code on account of separation from employment shall not be taxed at the time of distribution to the extent that an equivalent amount is reinvested in another such plan.