A bill to amend the Internal Revenue Code of 1954 to provide that in the case of individuals who attain age 62 no penalty shall be imposed for failure to pay estimated income tax where taxable income for the taxable years is less than $20,000 ($30,000 in the case of a married couple filing a joint return), and more than 50 percent of such income is retirement income.

Amends the Internal Revenue Code to exempt from the penalty for failure to pay estimated income tax individuals who have attained age 62 if: (1) the taxable income of such individual is less than $20,000 ($30,000 in the case of a joint return); and (2) more than 50 percent of the gross income of such individual is retirement income.

Defines "retirement income" as income from: (1) pensions and annuities; (2) interest; (3) rents; (4) dividends; (5) qualified bond purchase plans; (6) individual retirement accounts; and (7) individual retirement annuities.