Retirement Simplification and Clarity Act

This bill changes federal tax law for 401(k) retirement plans. It would let a plan allow workers age 50 or older to move some or all of the money they chose to contribute into an individual retirement annuity through a direct rollover while still employed. It also sets out a list of facts that, if included in plain language, would satisfy the required written notice plans give people about rollovers, such as tax withholding rules, the 10 percent early withdrawal tax, and the 60-day rollover window. The Treasury could update that list by regulation. The changes would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Jimmy Panetta Democrat sponsor
• 26 cosponsors