Major 401(k) Changes Being Considered By Congress [View all]

Last edited Sat Nov 29, 2025, 05:36 PM - Edit history (1)

Source: Newsweek

Published Nov 29, 2025 at 12:30 PM EST


Congress is weighing a plan that could let workers move money from their 401(k) plans into personal annuities without leaving their jobs, in a shift that could reshape how Americans save for retirement.

The proposal, which was reintroduced in the House this week and has now been referred to a Congressional committee, would amend the Internal Revenue Code of 1986 to provide for "in-service rollovers," giving employees more flexibility to lock in guaranteed income through annuities while still employed. The Internal Revenue Service (IRS) told Newsweek it does not comment on pending legislation.

Why It Matters

A bipartisan push from Democratic Representative Jimmy Panetta of California and Republican Representative Darin LaHood of Illinois, which was referred to the House Committee on Ways and Means on Friday, aims to address growing concerns over market uncertainty and longevity risk by allowing workers to secure lifetime income.

If enacted, this initiative would represent one of the most substantial overhauls to the retirement savings system since the SECURE 2.0 Act was signed into law by Joe Biden.

Read more: https://www.newsweek.com/401k-changes-considered-congress-11128887