Retirement Simplification and Clarity Act

The Retirement Simplification and Clarity Act allows employees aged 50 and older to roll over their employer-contributed retirement funds directly into an annuity. It also requires retirement plans to provide clear, plain-language explanations to participants about distribution options, including details on taxes, deadlines, and what types of funds cannot be rolled over. These changes aim to make the retirement process easier to understand by standardizing the information given to workers and clarifying the rules for moving money between accounts. The provisions will take effect for taxable years starting after December 31, 2026.