Retirement Simplification and Clarity Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6324 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6324 To amend the Internal Revenue Code of 1986 to provide for in-service rollovers for individual retirement annuity purchases. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES November 28, 2025 Mr. Panetta (for himself, Mr. LaHood, Mr. Miller of Ohio, Mr. Fitzpatrick, Mr. Davis of Illinois, Mr. Moran, Ms. DelBene, and Mr. Schneider) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide for in-service rollovers for individual retirement annuity purchases. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Retirement Simplification and Clarity Act''. SEC. 2. IN-SERVICE ROLLOVERS FOR ANNUITY PURCHASES. (a) In General.--Section 401(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ``(17) Special rule for pre-retirement rollover.-- Notwithstanding the requirements of paragraph (2)(B)(i), a plan may permit a participant who has attained age 50 or older to elect a direct rollover of all or a portion the accrued benefit of the participant attributable to employer contributions made pursuant to the employee's election to an individual retirement annuity (as defined in section 408(b)).''. (b) Safe Harbor.--Section 402(f) of such Code is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: ``(2) Safe harbor.-- ``(A) In general.--A written explanation shall satisfy the requirements of paragraph (1) if it includes the following information in concise, plain language: ``(i) Th