A bill to amend the Internal Revenue Code of 1954 with respect to the treatment for purposes of sections 219 and 220 of such Code of certain individuals who separate from service with an employer during the taxable year.

Amends the Internal Revenue Code to provide that an employee-participant in a tax-qualified plan of deferred compensation shall not lose eligibility for the income tax deduction for contributions to an individual retirement account if such employee separates from service with an employer during the taxable year and there is no increase in such employee's vested accrued benefit derived from employer contributions under such plan.