,,ii  #aaith ,,congress  #b;d ,session  
,s4 #eaef  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bi1     
#bjbf,mr4 ,marshall 7for himself and    
,mrs4 ,gillibrand7 introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to provide for  
in-service rollovers for individual     
retirement annuity purchases1 and for   
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,retirement    
,simplification and ,clarity ,act4  #b4 
,in-service rollovers for annuity       
purchases  7a7 ,in general ,section     
#dja7k7 of the ,internal ,revenue ,code 
of #aihf is amended by adding at the end
 the following new paragraph3  7#ag7    
,special rule for pre-retirement        
rollover ,notwithstanding the           
requirements of paragraph 7#b77;,b77i71 
a plan may permit a participant who has 
attained age #ej or older to elect a    
direct rollover to an individual        

retirement annuity 7as defined in       
section #djh7;b77 of all or a portion of
 the accrued benefit of the participant 
attributable to employer contributions  
made pursuant to the employee's         
election4  4  7b7 ,safe harbor ,section 
#djb7;f7 of the ,internal ,revenue ,code
 of #aihf is amended by redesignating   
paragraph 7#b7 as paragraph 7#c7 and by 
inserting after paragraph 7#a7 the      
following new paragraph3  7#b7 ,safe    
harbor  7,a7 ,in general ,a written     
explanation shall satisfy the           
requirements of paragraph 7#a7 if it    
includes the following information in   
concise1 plain language3 7i7 ,the       
taxpayer has #cj days to review such    
explanation before they must take any   
action4  7ii7 ,distributions made       
directly to the taxpayer will be subject
 to income tax withholding and added to 
gross income to the extent taxable4     
7iii7 ,the taxpayer may owe an          
additional #aj percent tax on a         
distribution issued before the taxpayer 

attains age #ei4  7iv7 ,a #bj percent   
income tax withholding will apply to    
distributions that are not eligible for 
rollover4  7v7 ,a taxpayer can defer    
,federal income tax on eligible         
distributions by rolling such           
distribution over to another qualified  
plan or individual retirement           
arrangement4  7vi7 ,a taxpayer may not  
roll over-- 7,i7 required minimum       
distributions1  7,,ii7 hardship         
distributions1  7,,iii7 a series of     
payments to be made over a number of    
years1  7,,iv7 employee stock ownership 
plan dividends1 or  7,v7 corrective     
distributions4  7vii7 ,the plan         
administrator can be contacted for      
information regarding whether all or a  
portion of a payment to the taxpayer is 
eligible for rollover4  7viii7 ,a plan  
may require the taxpayer to take a      
distribution upon the taxpayer's        
attainment of the plan's retirement age1
 or in the case of a benefit that is    
less than #g1jjj1 the plan may          

automatically pay the benefit directly  
to the taxpayer or in a rollover to an  
individual retirement account or1 for   
designated ,roth amounts1 a ,roth ,,ira 
it establishes for the taxpayer4  7ix7  
,eligible amounts may be rolled over to 
a new plan or to an individual          
retirement account when a taxpayer      
changes employers1 and the administrator
 of the new plan can confirm how to     
accomplish such a rollover4  7x7 ,the   
taxpayer may choose to leave eligible   
amounts in the taxpayer's original plan 
when changing employers4  7xi7 ,the     
taxpayer may roll over an eligible      
distribution to an individual retirement
 account or individual retirement       
annuity1 or a ,roth ,,ira for designated
 ,roth contributions4  7xii7 ,direct    
rollovers are not subject to mandatory  
#bj percent withholding under section   
#cdje1 and the distribution may be in   
the form of a check payable to the new  
plan or arrangement or by electronic    
transfer4  7xiii7 ,if the taxpayer      

receives a payment directly1 the        
taxpayer has up to #fj days from the    
date of distribution to roll over an    
amount equal to the eligible amount     
received plus the dollar amount that was
 withheld and sent to the ,internal     
,revenue ,service4  7xiv7 ,the taxpayer 
may obtain additional information from  
the ,internal ,revenue ,service4  7,b7  
,regulations and ,guidance ,the         
,secretary may promulgate such          
regulations and guidance as are         
necessary to administer this section1   
including regulations updating the list 
in subparagraph 7,a7 as necessary4  4   
7c7 ,effective ,date ,the amendments    
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjbf4