Legislation that would allow savers to roll over Roth individual retirement accounts (IRA) was recently reintroduced by a group of legislators.
The Retirement Rollover Flexibility Act, reintroduced by Reps. Darin LaHood (R-IL) and Linda Sánchez (D-CA) in the House of Representatives, along with Sens. John Barrasso (R-WY) and Michael Bennet (D-CO) in the U.S. Senate, would let retirement savers roll over Roth IRAs to a Roth account within a workplace retirement plan, like Roth 401(k), Roth 403(b), and Roth 457(b) plans.
Current legislation prohibits workers from rolling over a Roth IRA to an employer-sponsored Roth retirement plan. If the bill is passed, it would allow workers to save through an account that matches their needs, the lawmakers say.
It could also help with consolidation of assets, reduce duplicative fees, and simplify retirement savings while helping families save more for the future, said Rep. LaHood in a statement.
“Building retirement security is critical to the wellbeing of American families and the long-term strength of our economy,” Rep. LaHood said. “…Congress must continue to remove unnecessary barriers and find solutions that help American workers build for a comfortable retirement.”
In her statement, Rep. Sánchez observed the increased usage of Roth accounts by participants as more employers offer the plan type. The Plan Sponsor Council of America’s (PSCA) 2025 Annual Survey found that almost all (95.6%) of plans now offer Roth 401(k) contributions, even as 60% offer in-plan Roth conversions and just 20% allow for Roth employer contributions.
“Millions of Americans rely on Roth IRAs to help prepare for retirement. As more people use these accounts, we need to make it easier for workers to move their savings into the Roth options offered through their jobs,” said Congresswoman Sánchez.
The legislation has also seen the support of the American Retirement Association (ARA).
“With the rapid expansion of state auto-IRA programs—nearly all of which default savers into Roth IRAs—and with Americans changing jobs more often than ever, the need for true retirement savings portability has never been greater,” said Brian Graff, CEO of the ARA. “Allowing workers to move their Roth IRA balances into designated Roth accounts within employer-sponsored retirement plans is a smart, timely, and sensible solution. The Retirement Rollover Flexibility Act will reduce duplicative fees associated with maintaining multiple accounts, curb retirement savings leakage through seamless auto-portability, and ensure workers can carry their Roth savings with them as they move through their careers.”
The bill has since been referred to the Ways and Means Committee in the House of Representatives and the Finance Committee in the Senate.