119th (2025–2027)
H.R. 6450
The Retirement Rollover Flexibility Act would allow people to move money directly from Roth IRAs into designated Roth accounts within employer retirement plans, a transfer option currently not permitted under federal tax law. The bill specifically applies to individuals who have only one Roth IRA and whose account balance meets certain thresholds, and it includes special rules for automatic portability transfers between retirement plans. The changes would take effect immediately after the bill becomes law for any distributions made after that date. This legislation primarily affects retirement savers and workers who want more flexibility in consolidating their retirement savings across different account types without triggering tax penalties or complications. The bill includes technical provisions to ensure that funds transferred this way are treated fairly under tax rules, particularly regarding how earnings are taxed and when the funds become eligible for tax-free withdrawal.