Senators Propose Big Changes For Your Roth Retirement Accounts

U.S. Wyoming Senator John Barrasso and Michael Bennet, D-Colo., introduced legislation Tuesday that would make it easier for Americans to transfer their Roth retirement accounts when changing jobs, a move supporters say could reduce fees and help workers consolidate savings.

The bipartisan Retirement Rollover Flexibility Act would allow workers to roll over Roth Individual Retirement Accounts into employer-sponsored retirement plans, something current law prohibits. Without the change, many Americans must maintain multiple small accounts, often paying duplicative fees or cashing out early, which can erode retirement savings.

“Retirement savings belong to the workers who earn them, and those savings should follow them throughout their careers,” Barrasso said. Bennet added that current rules prevent Roth accounts from moving with workers like traditional accounts, calling the legislation “a fix to ensure all workers can consolidate their savings, reduce fees, and keep their nest egg growing.”

In the House, Representatives Darin LaHood, R-Ill., and Linda Sánchez, D-Calif., introduced companion legislation. LaHood said the bill would simplify retirement planning and reduce unnecessary costs, while Sánchez highlighted the growing reliance on Roth accounts and the need for portability in an increasingly mobile workforce.

The American Retirement Association praised the proposal, saying it would reduce fees, prevent the loss of retirement savings, and help workers maintain continuity as they change jobs.

Some experts caution that allowing Roth rollovers into employer plans could complicate administration and favor larger employers with more resources. Critics also warn that increased flexibility might lead some workers to treat retirement accounts as more liquid than intended, potentially undermining long-term savings.

The legislation seeks to create parity with traditional IRAs, preserve tax advantages, and coordinate with existing rules for designated Roth accounts. Supporters say it could have particular impact in states like Wyoming, where private-sector employees, nonprofit workers, and public employees all rely on Roth plans to build retirement security.