To amend the Internal Revenue Code of 1986 to permit deferred compensation plans of State and local governments and tax-exempt organizations to make certain distributions.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to permit deferred compensation plans of State and local governments and tax-exempt organizations to make distributions to a participant of the total amount payable under the plan to such participant if: (1) the total does not exceed $1,000; (2) the participant has not deferred any compensation during the prior two-year period; and (3) the plan provides that such participant may not defer any compensation during the five-year period after the date of distribution.…