This bill would allow people to transfer money directly from their Roth Individual Retirement Accounts (IRAs) into designated Roth accounts within employer-sponsored retirement plans like 401(k)s. Currently, tax law does not permit these direct transfers between these two types of tax-advantaged retirement savings accounts. The change would affect anyone who has both a Roth IRA and access to a Roth account through their employer's retirement plan. The bill makes technical amendments to the Internal Revenue Code to treat such transfers as valid rollovers and includes a coordination rule for the five-year holding period that applies to Roth accounts. There is no specific funding amount mentioned since this is a tax code change rather than a spending bill, and the amendments would take effect once the bill becomes law.
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