Retirement Rollover Flexibility Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3352 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 3352

     To amend the Internal Revenue Code of 1986 to permit rollover 
       contributions from Roth IRAs to designated Roth accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 4, 2025

  Mr. Barrasso (for himself and Mr. Bennet) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to permit rollover 
       contributions from Roth IRAs to designated Roth accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retirement Rollover Flexibility 
Act''.

SEC. 2. ROLLOVER CONTRIBUTIONS FROM ROTH IRAS TO DESIGNATED ROTH 
              ACCOUNTS.

    (a) Treatment as Rollover Distribution for Purposes of Roth IRA.--
            (1) In general.--Section 408(d)(3)(A) of the Internal 
        Revenue Code of 1986 is amended by striking ``; or'' at the end 
        of clause (i) and inserting a comma, by striking the period at 
        the end of clause (ii) and inserting ``, or'' and by inserting 
        after clause (ii) the following new clause:
                            ``(iii) the entire amount received 
                        (including money and any other property) is 
                        paid in a direct trustee-to-trustee transfer to 
                        a designated Roth account (within the meaning 
                        of section 402A)--
                                    ``(I) from an eligible Roth IRA, or
                                    ``(II) in an automatic portability 
                                transaction (as defined in section 
                                4975(f)(12)(A)(i)).''.
            (2) Eligible roth ira.--Section 408(d)(3) is amended by 
        adding at the end the following new subparagraph:
                    ``(J) Eligible roth ira.--For purposes of 
                subparagraph (A)(iii), the term `eligible Roth IRA' 
                means a Roth IRA which--
                            ``(i) is the only Roth IRA (other than a 
                        Roth IRA established under section 
                        401(a)(31)(B)(i)) maintained for the benefit of 
                        the individual during the taxable year of the 
                        taxpayer in which the distribution or payment 
                        described in subparagraph (A)(iii) is made, and
                            ``(ii) has a balance at the time of the 
                        payment or distribution which is not in excess 
                        of the amount described in section 
                        401(a)(31)(B)(ii).''.
    (b) Treatment as Rollover Contribution for Purposes of Designated 
Roth Account.--
            (1) In general.--Section 402A(c)(3)(B) of the Internal 
        Revenue Code of 1986 is amended by inserting ``or under section 
        408(d)(3)(A)(iii)'' after ``subparagraph (A)''.
            (2) Treatment of earnings in case of taxable 
        distributions.--Section 402A(d) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(6) Treatment of roth ira rollover contributions.--
        Notwithstanding section 72, the total amount of any rollover 
        contribution to a designated Roth account under section 
        408(d)(3)(A)(iii) shall be treated as investment in the 
        contract.''.
    (c) Coordination With Nonexclusion Period.--Section 402A(d)(2)(B) 
of such Code is amended--
            (1) by striking ``earlier'' in the matter preceding 
        subclause (i) and inserting ``earliest'',
            (2) by striking ``or'' at the end of clause (i),
            (3) by striking the period at the end of clause (ii), and
            (4) by adding at the end the following:
                            ``(iii) if a rollover contribution was made 
                        to such designated Roth account from a Roth IRA 
                        under section 408(d)(3)(A)(iii)(II) and the 
                        automatic portability provider (as defined in 
                        section 4975(f)(12)(A)(ii)) provides the first 
                        taxable year to which a contribution was made 
                        to the source plan, the first taxable year in 
                        which the individual made contributions to the 
                        source plan.
                For purposes of clause (iii), the term `source plan' 
                means the eligible retirement plan (as defined in 
                section 401(a)(31)(B)(ii)) from which amounts were 
                transferred to the Roth IRA as described in section 
                4975(f)(12)(A)(i)(I).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or distributed after the date of the enactment of 
this Act.
                                 <all>