Press ReleaseBipartisan2026-04-29

LaHood, Panetta Introduce Bipartisan Bill to Simplify Retirement Options for Seniors

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This press release from Representative Darin LaHood (R-IL) was published on 2026-04-29 and titled "LaHood, Panetta Introduce Bipartisan Bill to Simplify Retirement Options for Seniors". It focuses on the environment.

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LaHood, Panetta Introduce Bipartisan Bill to Simplify Retirement Options for Seniors

Washington, D.C. - Congressman Darin LaHood (IL-16) introduced the Retirement Simplification and Clarity Act, alongside his Ways and Means colleague Congressman Jimmy Panetta (CA-19). This legislation works to remove barriers and provide individuals with clearer guidance and more flexibility while planning for retirement. "Hardworking Americans planning for retirement shouldn't have to face extraneous complications that create uncertainty about their financial future," said Rep. LaHood. "Providing more flexibility and a better guidance during the process will help ensure Americans can properly prepare for retirement and feel confident in their decisions. I am proud to lead this bipartisan effort with Representative Panetta to help eliminate needless hurdles and reduce the confusion surrounding retirement." "Navigating the various processes of saving for retirement can get very complicated, very fast," said Rep. Panetta. "This bipartisan bill helps Americans plan for retirement by making the process simpler and giving them more flexibility. By helping Americans make informed decisions about their savings, we can strengthen their financial security for retirement and the years ahead." "The National Association of Insurance and Financial Advisers (NAIFA) is pleased to endorse the Retirement Simplification and Clarity Act, introduced by Rep. Panetta (D-CA) and Rep. LaHood (R-IL)" announced NAIFA CEO Kevin M. Mayeux. "As the largest national association of insurance and financial advisers with members assisting hard-working, everyday Americans in all states and Congressional districts with retirement savings choices, we applaud any effort to simplify the rules for retirement savings and to enhance the ability of retirees to ensure they do not outlive their savings through guaranteed income options. This bill will advance those worthy goals, and NAIFA looks forward to working with the sponsors to see it enacted." Background: A 402(f) Notice is a document that lays out the action steps that someone can take with their retirement savings. It is issued to participants who have separated from their employer and requested a distribution from their plan. It is the only disclosure that plans are required to provide to participants who are eligible for a rollover that is specifically about the options for their plan savings and its related tax consequences. A 2024 Government Accountability Office (GAO) Report found that 401k participant understanding of their distribution options remains a challenge despite treasury's required 402(f) notices. This is in part due to the complexity of the notices and lack of clarity. Participants also cannot use in service rollover rules to buy annuities while continuing to save in their 401k, limiting their options for income streams into retirement. 402(f) notices are overly complex and unclear and in-service rollover restrictions limit 401k participants' options. To combat these issues, the Retirement Simplification and Clarity Act implements GAO recommendations to simplify 402(f) notices that outline options when individuals request distributions from their retirement plans. This bill creates a new in-service rollover option to allow individuals aged 50+ to roll over some or all their existing retirement savings into an annuity product for guaranteed lifetime income while continuing to save in their 401(k) plan. These adjustments simplifies information for individuals and expands income stream options for retirement. ###

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LaHood, Panetta Introduce Bipartisan Bill to Simplify Retirement Options for Seniors Washington, D.C. - Congressman Darin LaHood (IL-16) introduced the Retirement Simplification and Clarity Act, alongside his Ways and Means colleague Congressman Jimmy Panetta (CA-19). This legislation works to remove barriers and provide individuals with clearer guidance and more flexibility while planning for retirement. "Hardworking Americans planning for retirement shouldn't have to face extraneous complications that create uncertainty about their financial future," said Rep. LaHood. "Providing more flexibility and a better guidance during the process will help ensure Americans can properly prepare for retirement and feel confident in their decisions. I am proud to lead this bipartisan effort with Representative Panetta to help eliminate needless hurdles and reduce the confusion surrounding retirement." "Navigating the various processes of saving for retirement can get very complicated, very fast," said Rep. Panetta. "This bipartisan bill helps Americans plan for retirement by making the process simpler and giving them more flexibility. By helping Americans make informed decisions about their savings, we can strengthen their financial security for retirement and the years ahead." "The National Association of Insurance and Financial Advisers (NAIFA) is pleased to endorse the Retirement Simplification and Clarity Act, introduced by Rep. Panetta (D-CA) and Rep. LaHood (R-IL)" announced NAIFA CEO Kevin M. Mayeux. "As the largest national association of insurance and financial advisers with members assisting hard-working, everyday Americans in all states and Congressional districts with retirement savings choices, we applaud any effort to simplify the rules for retirement savings and to enhance the ability of retirees to ensure they do not outlive their savings through guaranteed income options. This bill will advance those worthy goals, and NAIFA looks forward to working with the sponsors to see it enacted." Background: A 402(f) Notice is a document that lays out the action steps that someone can take with their retirement savings. It is issued to participants who have separated from their employer and requested a distribution from their plan. It is the only disclosure that plans are required to provide to participants who are eligible for a rollover that is specifically about the options for their plan savings and its related tax consequences. A 2024 Government Accountability Office (GAO) Report found that 401k participant understanding of their distribution options remains a challenge despite treasury's required 402(f) notices. This is in part due to the complexity of the notices and lack of clarity. Participants also cannot use in service rollover rules to buy annuities while continuing to save in their 401k, limiting their options for income streams into retirement. 402(f) notices are overly complex and unclear and in-service rollover restrictions limit 401k participants' options. To combat these issues, the Retirement Simplification and Clarity Act implements GAO recommendations to simplify 402(f) notices that outline options when individuals request distributions from their retirement plans. This bill creates a new in-service rollover option to allow individuals aged 50+ to roll over some or all their existing retirement savings into an annuity product for guaranteed lifetime income while continuing to save in their 401(k) plan. These adjustments simplifies information for individuals and expands income stream options for retirement. ###