Retirement Simplification and Clarity Act

This bill allows workers aged 50 or older to directly roll over employer retirement contributions (from 401(k) plans) into an individual retirement annuity without triggering immediate taxes or penalties. It requires retirement plan administrators to provide clear, plain-language written explanations about rollover rules, including a 30-day review period, tax implications (like the 10% early withdrawal penalty), and what types of distributions cannot be rolled over (such as required minimum distributions). The rules apply to taxable years starting after December 31, 2025, and aim to simplify the process for older workers changing jobs or managing retirement funds. It directly affects workers aged 50+ and retirement plan administrators who must comply with the new disclosure standards.