A bill to amend the Internal Revenue Code of 1954 to permit banks (as defined in section 401(d)(1) to be authorized investments for 403(b)(7) custodial accounts.

Permits under the Internal Revenue Code an employer who is a corporation or other organization exempt from the income tax, and who contributes to a custodial account which is a qualified employee retirement plan, to invest the funds so contributed in savings accounts or debt obligations of banks.