A bill to amend the Internal Revenue Code of 1954 to provide that, in the case of an employee annuity, the employee may elect to exclude from gross income all amounts received by the employee under the annuity until the employee recovers his consideration for the annuity, without regard to whether such consideration is recovered during the first three years of the annuity.

Amends the Internal Revenue Code to provide that an employee receiving benefits under an annuity, endowment, or life insurance contract, where part of the consideration for such contract is contributed by the employer, may elect to exclude from gross income an amount equal to the consideration contributed by such employee without regard to whether such consideration is recovered during the first three years of the annuity.

Provides that, for purposes of such exclusion, non-deductible owner-employee contributions shall be treated as consideration for the contract contributed by the employee.