To amend the Internal Revenue Code of 1986 to permit the tax-free rollover of certain payments made by employers to separated employees.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to exclude from gross income qualified separation payments transferred to individual retirement accounts. Describes such payments as qualified if: (1) such payments were voluntarily paid by the employer on account of separation before attainment of normal retirement age; and (2) such separation was in connection with a substantial reduction in the employer's work force.…