Bill > HR6324

This bill modifies the Internal Revenue Code to allow workers aged 50 and older to make direct rollovers of their employer-sponsored retirement plan contributions (specifically 401(k) contributions) into an individual retirement annuity. The bill also mandates that plan administrators provide a comprehensive written explanation to participants about their rollover options, which must be written in plain language and include 14 specific pieces of information. These details cover topics such as tax implications, withholding requirements, potential penalties, rollover eligibility, and the timeframes for taking action. The explanation must clarify that participants have 30 days to review the information, can defer taxes by rolling over distributions to qualified plans or IRAs, and must be aware of certain restrictions on rollovers (such as required minimum distributions and hardship distributions). The changes introduced by this bill would take effect for taxable years beginning after December 31, 2025, giving retirement plans and administrators time to prepare for the new requirements. The overall goal appears to be providing more flexibility for older workers in managing their retirement savings and ensuring they receive clear, understandable information about their options.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6324/all-info