Retirement Simplification and Clarity Act
Sponsored By: Senator Marshall, Roger [R-KS]
Introduced
Summary
Allows direct in‑service rollovers to individual retirement annuities for 401(k) participants age 50 and older. It would also require a concise Safe Harbor written notice that explains rollover options, tax withholding, deadlines, and items that cannot be rolled over.
Show full summary
- Older workers: Participants age 50 and older could elect a direct rollover of accrued benefits attributable to employer contributions into an individual retirement annuity while still employed.
- Plan administrators: Plans would need to provide a plain‑language Safe Harbor notice that includes a 30-day review period and an automatic cash‑out threshold for small balances of $7,000.
- Taxpayers taking distributions or changing jobs: Eligible amounts could be rolled to a new plan or an individual retirement account, direct rollovers would avoid mandatory 20% withholding, and taxpayers who receive payments directly would have 60 days to complete a rollover that includes any amounts withheld.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New rollover rules for older workers
If enacted, plans could let participants age 50 or older directly roll employer-contribution amounts to an individual retirement annuity while still working. This would be optional for plan sponsors; employers would not be required to allow it. The bill would also create a plain-language safe-harbor notice plans could give 30 days before a distribution. The notice would explain tax withholding, the 10% early-withdrawal tax before age 59 1/2, the 20% withholding rule, the 60-day rollover deadline (including withheld amounts), items that cannot be rolled over, rules for amounts under $7,000, and how to contact the plan administrator. These changes would apply for tax years beginning after December 31, 2026.
Sponsors & CoSponsors
Sponsor
Marshall, Roger [R-KS]
KS • R
Cosponsors
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 7/29/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov