A bill to amend the Internal Revenue Code of 1954 to provide for the application of cash or deferred arrangement rules to money purchase plans.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide that a money purchase pension plan shall not lose its tax exemption because the plan includes a qualified salary reduction arrangement. Defines "qualified salary reduction arrangement" and "money purchase pension plan" for purposes of this Act. Provides that distributions from such a plan shall be taxable to the beneficiary in the same manner as an annuity. Sets forth transitional rules for contributions made to such plans before the effective date of this Act.…