Summary
Congress is considering a new plan that would allow workers to transfer money from their 401(k) retirement accounts into personal annuities without leaving their jobs. This proposal aims to give employees more control over their retirement savings. It involves legislative changes and seeks to simplify and provide more options for retirement planning.
Key Facts
- Congress is looking at a proposal for "in-service rollovers" from 401(k) accounts to annuities.
- The plan would let employees move money without quitting their jobs.
- Democratic Rep. Jimmy Panetta and Republican Rep. Darin LaHood reintroduced the plan.
- The proposal is meant to tackle market uncertainty and help secure lifetime income.
- The legislation asks the IRS to simplify notices explaining retirement fund options.
- People aged 50 and older would have more flexibility if the plan passes.
- The proposal builds on changes introduced by the SECURE Act 2.0.
- Financial experts from relevant insurance and financial organizations support the plan.
