Congress Advances 401(k) Reform Bill to Enhance Retirement Flexibility
A bipartisan proposal aimed at reforming 401(k) retirement savings plans is gaining momentum in Congress. The Retirement Simplification and Clarity Act, reintroduced by Democratic Representative Jimmy Panetta and co-sponsored by Republican Representative Darin LaHood, seeks to allow workers aged 50 and older to move part of their 401(k) savings into an annuity without quitting their job. This change is intended to provide older workers with more flexibility to secure guaranteed income while still employed. The bill also addresses the complexity of retirement plan paperwork by directing the IRS to provide clearer, plain-language explanations of options and tax consequences. The proposal builds on previous legislative efforts, including the SECURE 2.0 Act, which expanded retirement savings options. 
