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Increased Flexibility for Rolling Over Roth IRA Funds to Designated Roth Accounts.

This Act enhances retirement savings flexibility by allowing individuals to roll over funds from their Roth IRAs directly into Designated Roth Accounts within employer-sponsored retirement plans. This change simplifies the consolidation of retirement savings, particularly when changing jobs, and provides citizens with a new tax-free transfer option. The transfer must be executed as a direct trustee-to-trustee transfer to maintain its tax-advantaged status.
Key points
New Transfer Option: Allows direct rollover of funds from a Roth IRA to a Designated Roth Account (e.g., in an employer's 401(k) plan).
Simplified Management: Facilitates the consolidation of retirement savings into a single account, which is beneficial when switching employers.
Single Account Rule: To qualify for the rollover, the Roth IRA must generally be the only one maintained by the individual during the taxable year (with minor exceptions).
Tax Treatment: These transfers are treated as rollovers, ensuring the funds remain tax-advantaged without immediate taxation upon transfer.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6450
Sponsor: Rep. LaHood, Darin [R-IL-16]
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Retirement Rollover Flexibility Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6450.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

What are the main provisions?

Key points include:

  • New Transfer Option: Allows direct rollover of funds from a Roth IRA to a Designated Roth Account (e.g., in an employer's 401(k) plan).
  • Simplified Management: Facilitates the consolidation of retirement savings into a single account, which is beneficial when switching employers.
  • Single Account Rule: To qualify for the rollover, the Roth IRA must generally be the only one maintained by the individual during the taxable year (with minor exceptions).
  • Tax Treatment: These transfers are treated as rollovers, ensuring the funds remain tax-advantaged without immediate taxation upon transfer.
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. LaHood, Darin [R-IL-16].

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 2025-12-31.

CATEGORIES

Taxes Economy