Retirement Simplification and Clarity Act

This bill allows workers aged 50 or older to directly roll over employer contributions from their 401(k) plans into an IRA before retirement. It requires plans to provide clear written explanations about tax implications, including a 30-day review period, withholding rules, and restrictions on rolling over certain distributions (like required minimums or hardship withdrawals). The changes take effect for 2025 tax years, aiming to simplify pre-retirement rollovers while reducing tax errors. It directly affects 401(k) participants aged 50+ seeking to move employer-funded savings to an IRA.