Core Insights - The IRS mandates required minimum distributions (RMDs) from tax-deferred retirement accounts, which are based on the account holder's age and account balance at the end of the previous year [4][5]. - Recent legislative changes, specifically the SECURE Act 2.0, have increased the RMD age to 73 starting in 2023 and will further increase it to 75 in 2033 [5]. - Roth IRAs are exempt from RMDs, and starting in 2024, designated Roth accounts within employer-sponsored plans will also be exempt from age-based RMDs [6]. RMD Requirements - RMDs are required for most tax-advantaged retirement accounts, with the exception of Roth IRAs [5]. - The previous RMD age was 70 ½, which was raised to 72 by the SECURE Act of 2019 before being adjusted again by the SECURE Act 2.0 [4][5]. Employment Status and RMDs - Individuals who are still employed do not have to take RMDs from their current employer's retirement plan [8]. - However, RMDs must still be taken from retirement accounts associated with former employers, and rolling over those funds into the current plan can help avoid RMDs from old accounts [8].

Core Points - The proposed legislation aims to allow workers to roll over personal Roth IRAs into workplace Roth accounts, such as Roth 401(k)s, 403(b)s, and 457(b)s, simplifying account management and reducing fees [3][4] - The bill is sponsored by U.S. Representatives Darin LaHood and Linda T. Sanchez, emphasizing the benefits of asset consolidation and enhanced retirement savings for families [4] Summary by Sections Proposed Legislation - The legislation seeks to enable the combination of Roth assets into workplace accounts, which could streamline the management of retirement savings [3] - If enacted, it would help eliminate the complexities and fees associated with maintaining multiple investment accounts [4] Benefits of Roth Accounts - Roth IRAs allow for tax-free withdrawals of gains after specific conditions are met, making them attractive for younger workers who may face higher tax brackets in retirement [6][7] - Contributions to Roth accounts are made with after-tax money, ensuring that all subsequent gains can be withdrawn tax-free during retirement [8]