Peoria Standard

U.S. Representatives Darin LaHood (R-IL) and Linda T. Sanchez (D-CA) have introduced bipartisan legislation aimed at enhancing retirement security. The bill would enable individuals to transfer their Roth Individual Retirement Account (IRA) savings into a designated Roth account within a workplace retirement plan.

Under current law, workers are prohibited from rolling over Roth IRA savings into workplace-based Roth retirement plans offered by employers. However, the new legislation proposed by LaHood and Sanchez seeks to change that. It would allow workers to transfer contributions from their Roth IRA plans to a workplace designated Roth account, such as a Roth 401(k), Roth 403(b), or Roth 457(b).

Representative LaHood emphasized the importance of building retirement security for the overall strength of the economy. He stated, "Our bipartisan bill will allow for the consolidation of assets, reduce the potential for duplicative fees, and bolster retirement savings for families across the country."

Congresswoman Sanchez highlighted the growing number of Americans utilizing Roth IRA accounts to save for retirement and the need to ensure that workers can roll their savings into designated Roth accounts within a workplace-based retirement plan. She expressed her pride in co-leading this bipartisan bill with Congressman LaHood, stating that it would enable retirement savers to boost their savings and enjoy a comfortable retirement in the future.

The legislation has received support from various organizations, including the American Retirement Association. CEO Brian Graff commended Representatives LaHood and Sanchez for their sensible proposal, stating that allowing workers to move their Roth IRA balances into designated Roth accounts in a workplace retirement plan would benefit workers in several ways. This includes reducing duplicative fees and facilitating the seamless transfer of Roth savings through the auto-portability process.

The bill introduced by LaHood and Sanchez builds upon their previous legislation, the Starter-K Act, which was included in the SECURE 2.0 retirement package signed into law in 2022. The Starter-K Act aimed to expand retirement plan options for small businesses, allowing them to offer retirement plans to their employees.

In an effort to strengthen retirement security, Representative Darin LaHood and Congresswoman Linda T. Sanchez have introduced legislation that would enable individuals to roll over their Roth IRA savings into designated Roth accounts within workplace retirement plans. The bipartisan bill aims to consolidate assets, reduce duplicative fees, and bolster retirement savings for families across the country. The proposed legislation has garnered support from various organizations, including the American Retirement Association. If passed, this bill would provide individuals with greater flexibility in managing their retirement savings and contribute to a more secure financial future.

To learn more, click on this link: https://lahood.house.gov/2023/12/lahood-s-nchez-introduce-roth-ira-rollover-legislation-to-bolster-retirement-security