Bill > S3352

This bill amends the Internal Revenue Code to allow individuals to roll over funds from Roth Individual Retirement Accounts (Roth IRAs) to designated Roth accounts in certain circumstances. Specifically, the bill permits direct trustee-to-trustee transfers of an entire Roth IRA balance to a designated Roth account, either from an eligible Roth IRA or through an automatic portability transaction. An eligible Roth IRA is defined as the only Roth IRA maintained for the individual in the tax year of the distribution, with a balance not exceeding a specified amount. The bill also provides guidance on how these rollover contributions will be treated for tax purposes, including how earnings will be classified and how the non-exclusion period for contributions will be calculated. For example, in the case of an automatic portability transaction, the first taxable year of contribution will be determined by the original source retirement plan. These changes are designed to provide more flexibility for individuals managing their retirement savings, allowing easier movement of funds between different types of retirement accounts while maintaining appropriate tax treatment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3352/all-info