To amend the Internal Revenue Code of 1986 to provide for in-service rollovers for individual retirement annuity purchases.
Sponsors
Legislative Progress
IntroducedMr. Panetta (for himself, Mr. LaHood, Mr. Miller of Ohio, …
Summary
What This Bill Does
This bill makes two key changes to retirement plan rules. First, it allows workers age 50 and older to roll over their employer-contributed retirement funds into individual retirement annuities while still employed, rather than waiting until they leave their job. Second, it creates a standardized plain-language disclosure form that plan administrators can use to explain distribution options to participants.
Who Benefits and How
Retirement plan participants age 50+ benefit by gaining earlier access to roll over funds into annuities, providing more flexibility in retirement planning. Plan administrators and employers benefit from reduced compliance burden through a clear safe harbor disclosure template that satisfies legal requirements. Insurance companies selling annuities may see increased business from the expanded rollover option.
Who Bears the Burden and How
No significant new burdens are imposed. The IRS must develop regulations to administer the new provisions. Retirement plan participants who misunderstand the rules could face tax consequences, though the simplified disclosures aim to reduce this risk.
Key Provisions
- Allows participants age 50+ to roll over employer-contributed amounts to individual retirement annuities while still employed
- Creates a 14-point safe harbor disclosure template in plain language
- Requires the Secretary of the Treasury to issue implementing regulations
- Takes effect for taxable years beginning after December 31, 2025
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Simplifies retirement plan distribution rules by allowing in-service rollovers for annuity purchases for participants aged 50+ and creates a standardized safe harbor disclosure format for plan administrators.
Policy Domains
Legislative Strategy
"Encourage retirement savings flexibility and reduce administrative burden on plan sponsors through clearer disclosure requirements"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
An annuity contract as defined in Internal Revenue Code section 408(b), which is a type of individual retirement arrangement
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology