S. 3352Senate119th Congress (2025-2027)In Committee

Retirement Rollover Flexibility Act

Introduced December 4, 2025

AI-Generated Summary

Updated December 30, 2025 at 5:41 AM UTC

The Retirement Rollover Flexibility Act changes the tax code to let people move the full balance from a Roth IRA directly into a designated Roth account, like a Roth 401(k), without tax penalties. It sets rules for which Roth IRAs qualify and how the transferred money is treated for tax purposes. The changes take effect for rollovers made after the law is passed.

Key Provisions

  • Allows a direct trustee‑to‑trustee rollover of the entire balance (cash or property) from an eligible Roth IRA to a designated Roth account, such as a Roth 401(k).
  • Defines an “eligible Roth IRA” as the only Roth IRA a person has (excluding certain employer‑sponsored Roth IRAs) and that is not larger than the amount allowed for Roth contributions.
  • Treats these rollovers as rollover contributions for the receiving designated Roth account, so they are not taxed as ordinary income and are counted as investments in the account.
  • Updates coordination rules for the non‑exclusion period to reflect the new rollover source and timing, ensuring proper tax treatment of the transferred amounts.
  • Specifies that the changes apply to any rollovers made after the law’s enactment.

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S8512-8513)

December 4, 2025

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SenateIntro Referral

Introduced in Senate

December 4, 2025

SenateIntro Referral

December 4, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S8512-8513)

December 4, 2025

Floor Debate

5 members

What members said about S. 3352 on the floor

2 Republicans3 Democrats
Susan M. Collins
Sen. Susan M. CollinsR-ME · Dec 4, 2025

Mr. President, I rise today to introduce the Relief for Farmers Hit with PFAS Act. I thank my colleagues Senator King and Senator Shaheen for joining me in introducing this important legislation for…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Dec 4, 2025

Mr. President, I rise today to introduce the Relief for Farmers Hit with PFAS Act. I thank my colleagues Senator King and Senator Shaheen for joining me in introducing this important legislation for…

Jack Reed
Sen. Jack ReedD-RI · Dec 4, 2025

Mr. President, literacy opens the door for lifelong opportunity and economic success. Yet, the long-term trend in the National Assessment of Educational Progress, NAEP, shows continued declines in…

Alex Padilla
Sen. Alex PadillaD-CA · Dec 4, 2025

Mr. President, I rise to introduce the bipartisan Protect Innocent Victims of Taxation After Fire Extension Act. This legislation would extend and make permanent the tax relief that Congress has…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 4, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

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John Barrasso
Sen. John BarrassoR-WY · Dec 4, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

John Barrasso
Sen. John BarrassoR-WY · Dec 4, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued December 4, 2025

II

119th CONGRESS

1st Session

S. 3352

IN THE SENATE OF THE UNITED STATES

December 4, 2025

Mr. Barrasso (for himself and Mr. Bennet) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

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

1.

Short title

This Act may be cited as the Retirement Rollover Flexibility Act.

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.