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Retirement Savings Flexibility: Moving 401(k) Funds to Annuities After Age 50.

This law makes it easier for individuals aged 50 and older to move a portion of their 401(k) savings into an Individual Retirement Annuity, even while remaining employed. Furthermore, it establishes clear, plain-language rules for informing citizens on how to properly transfer retirement funds to avoid tax penalties. These changes aim to increase the security and transparency of retirement savings.
Key points
Individuals aged 50 and older gain the option to roll over a portion of their 401(k) savings into an annuity without having to leave their current job.
Standardized, plain-language explanations must be provided to citizens regarding the rules for transferring retirement funds (rollovers).
The new rules for transferring funds take effect for tax years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6324
Sponsor: Rep. Panetta, Jimmy [D-CA-19]
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Retirement Simplification and Clarity Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6324.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

What are the main provisions?

Key points include:

  • Individuals aged 50 and older gain the option to roll over a portion of their 401(k) savings into an annuity without having to leave their current job.
  • Standardized, plain-language explanations must be provided to citizens regarding the rules for transferring retirement funds (rollovers).
  • The new rules for transferring funds take effect for tax years beginning after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Panetta, Jimmy [D-CA-19].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Economy