12.01.25

Bipartisan Bill To Streamline 401(k) Distribution Options, Expand In-Service Rollover Choices Reintroduced

by: Brian Anderson

A bipartisan bill, the Retirement Simplification and Clarity Act, was reintroduced in Congress by Reps. Jimmy Panetta (D-CA) and Darin LaHood (R-IL) on Nov. 26 to simplify 401(k) distribution processes and expand in-service rollover options. The legislation would streamline the complex 402(f) notice, providing clear explanations of distribution choices, tax implications and rollover options. It also allows individuals aged 50 and older to transfer 401(k) funds into annuities. The measure is currently under review by the House Ways and Means Committee.

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