# Congress Considers Allowing 401(k) Rollovers Into Annuities While Employed
Congress is weighing a plan that could let workers move money from their 401(k) plans into personal annuities without leaving their jobs, in a shift that could reshape how Americans save for retirement.
The proposal, which was reintroduced in the House this week and has now been referred to a Congressional committee, would amend the Internal Revenue Code of 1986 to provide for “in-service rollovers,” giving employees more versatility to lock in guaranteed income through annuities while still employed.
The Internal Revenue Service (IRS) told Newsweek it does not comment on pending legislation.
## why It Matters
A bipartisan push from Democratic Representative Jimmy panetta of California and Republican Representative Darin LaHood of illinois, which was referred to the House Committee on Ways and Means on Friday, aims to address growing concerns over market uncertainty and longevity risk by allowing workers to secure lifetime income.If enacted, this initiative would represent one of the most ample overhauls to the retirement savings system since the SECURE 2.0 Act was signed into law by Joe Biden.
## What To know
Congress is examining a proposal that would provide employees unprecedented flexibility to move funds from their 401(k) retirement accounts into annuities without leaving their current jobs, a process known as “in-service rollovers.”
It comes as part of a wider plan , the Retirement Simplification and Clarity Act, reintroduced this week by representatives Panetta and LaHood, who described it as “bipartisan legislation that would provide more flexibility and clearer guidance to Americans navigating retirement savings decisions.”
The Congressmen said in a statement: “The bill would empower individuals with options and digestible data for securing their financial futures.”
They added: “Specifically,the Retirement Simplification and Clarity Act would implement key recommendations from the Government Accountability Office to streamline the elaborate 402(f) notice process.
A 402(f) notice is the document provided to individuals who leave an employer and request a distribution from their 401(k) plans. The notice outlines distribution options and their tax implications.
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