Congresswoman Foxx Introduces Bill to Help SIMPLE IRA's

Congresswoman Virginia Foxx introduced H.R. 5672, no-cost, bipartisan legislation to correct a technical limitation preventing the rollover of tax-deferred retirement funds into existing SIMPLE IRA accounts.  Representative Foxx said, “This legislation will simplify Americans’ retirement planning and ensure a complex tax code does not prevent sensible financial planning decisions."  In 1996, federal legislation established a new type of employer sponsored retirement plan, SIMPLE IRAs.  These plans were designed to give small employers a straightforward retirement plan option for employees without the administrative burdens of other employer-sponsored retirement plan types. Consumers and financial planners have struggled with the rollover restrictions as they attempt to consolidate accounts, so H.R. 5672 would allow for rollovers into SIMPLE IRA accounts that have met the two-year threshold. This legislation is supported by the National Association of Insurance and Financial Advisors (NAIFA).