Washington, D.C. – U.S. Representatives Darin LaHood (IL-16) and Linda T. Sanchez (CA-38), along with Senators John Barrasso (R-WY) and Michael Bennet (D-CO), reintroduced the Retirement Rollover Flexibility Act. This bipartisan, bicameral legislation will allow retirement savers to roll over their Roth IRA savings into a Roth account within a workplace retirement plan.
"Building retirement security is critical to the wellbeing of American families and the long-term strength of our economy," said Congressman LaHood. "Our bipartisan bill will allow for the consolidation of assets, reduce duplicative fees, simplify retirement savings, and help families across the country better plan for their future. Congress must continue to remove unnecessary barriers and find solutions that help American workers build for a comfortable retirement. I am proud to join my Ways and Means colleague, Representative Sanchez, and Senators Barrasso and Bennet on this commonsense legislation."
“Millions of Americans rely on Roth IRAs to help prepare for retirement. As more people use these accounts, we need to make it easier for workers to move their savings into the Roth options offered through their jobs,” said Congresswoman Sánchez. “I’m grateful to work with Congressman LaHood and Senators Barrasso and Bennet on this bipartisan, bicameral effort to give people a simple way to roll over their savings to build a stronger foundation for retirement.”
“Retirement savings belong to the workers who earn them, and those savings should follow them throughout their careers,” said Senator Barrasso. “The Retirement Rollover Flexibility Act creates new options for workers to bring retirement savings with them when changing jobs. This commonsense reform will strengthen retirement security and help Wyoming families build stronger financial futures.”
“Workers shouldn’t lose track of their retirement savings just because they change jobs,” said Senator Bennet. “Right now, outdated rules prevent Roth retirement accounts from moving with workers the way traditional accounts can. This bill fixes that gap—ensuring all workers can consolidate their retirement savings, reduce fees, and keep their nest egg growing no matter where their career takes them.”
“With the rapid expansion of state auto-IRA programs—nearly all of which default savers into Roth IRAs—and with Americans changing jobs more often than ever, the need for true retirement savings portability has never been greater,” said Brian Graff, CEO of the American Retirement Association. “Allowing workers to move their Roth IRA balances into designated Roth accounts within employer-sponsored retirement plans is a smart, timely, and sensible solution. The Retirement Rollover Flexibility Act will reduce duplicative fees associated with maintaining multiple accounts, curb retirement savings leakage through seamless auto-portability, and ensure workers can carry their Roth savings with them as they move through their careers. The American Retirement Association applauds Senators Barrasso and Bennet and Representatives LaHood and Sánchez for their leadership on this critical issue.”
Background:
Current law prohibits workers from rolling Roth IRA savings into workplace-based Roth retirement plans offered by employers. The Retirement Rollover Flexibility Act would specifically allow the transfer of contributions from Roth IRA plans to a workplace designated Roth account, such as a Roth 401(k). Allowing this consolidation will let workers choose the retirement savings option that best suits their need while reducing the risk of savings being lost or withdrawn early.
The legislation is supported by the American Retirement Association.
###
