H.R. 6450

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6450 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6450

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

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 4, 2025

Mr. LaHood (for himself and Ms. Sanchez) introduced the following bill; 
which was referred to the Committee on Ways and Means

_______________________________________________________________________

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.
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