A bill to amend the Internal Revenue Code of 1954 to permit the rollover to individual retirement plans of certain partial distributions received by employees.

Amends the Internal Revenue Code to permit the rollover into an individual retirement plan of a partial distribution received by an employee from a tax-qualified deferred compensation plan (present law permits a rollover only of a total distribution). Specifies that such partial distributions may be transferred only to individual retirement plans.

Denies 10-year averaging and capital gains treatment for subsequent distributions of any undistributed sums.

Provides that partial distributions made to the spouse of an employee after the employee's death shall be eligible for such rollover in the same manner as if the spouse were the employee.