A bill to amend the Internal Revenue Code of 1954 to permit the rollover of certain partial distributions from qualified plans, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow the rollover of certain partial distributions from employee benefit plans into individual retirement plans if: (1) the distribution is equal to at least 50 percent of the employee's balance; (2) the distribution is not one of a series of periodic payments; and (3) the employee elects such treatment. Denies ten year averaging and capital gains treatment for any subsequent distributions if such a rollover is made. Makes eligible for such a rollover any partial distributions paid to a spouse of an employee after the employee's death. Revises related parties rules to require that a payor of expenses and interest be placed on the cash method of accounting for purposes of deducting business expenses and interest owed to a related party cash-basis taxpayer. Extends present rules relating to such payments by Subchapter S corporations to such payments by partnerships. Allows an income tax deduction, as an ordinary loss, of losses incurred on the disposition of preferred stock of a domestic small business corporation. (Present law limits such treatment to losses incurred on the disposition of common stock in such a corporation.) Makes technical corre…