Retirement Simplification and Clarity Act amends the Internal Revenue Code to allow in-service rollovers for individual retirement annuity purchases.

The Retirement Simplification and Clarity Act amends the Internal Revenue Code to allow in-service rollovers for individual retirement annuity purchases. This means that participants aged 50 or older can roll over their accrued benefits from employer contributions to an individual retirement annuity. The bill also mandates that written explanations for rollovers must include specific information in plain language, such as the 30-day review period, tax implications, and ineligible distributions. The changes apply to taxable years beginning after December 31, 2025.

Retirement Simplification and Clarity Act amends the Internal Revenue Code to allow in-service rollovers for individual retirement annuity purchases.

The Retirement Simplification and Clarity Act amends the Internal Revenue Code to allow in-service rollovers for individual retirement annuity purchases. This means that participants aged 50 or older can roll over their accrued benefits from employer contributions to an individual retirement annuity. The bill also mandates that written explanations for rollovers must include specific information in plain language, such as the 30-day review period, tax implications, and ineligible distributions. The changes apply to taxable years beginning after December 31, 2025.