The grassroots involvement of two NAIFA members from Kansas reveals the power of advocacy in action. In March of this year, Brittany Williams and Cassie Johnson met with Sen. Roger Marshall (R-KS) during NAIFA’s Women’s Fly-In and sparked the senator’s interest in the Retirement Simplification and Clarity Act (H.R. 6324 and S. 5165). This bipartisan legislation, which was previously introduced in the House, would provide retirement savers with flexibility to convert 401(k) account funds to streams of guaranteed lifetime income. After hearing from his NAIFA constituents, Marshall along with Sen. Kirsten Gillibrand (D-NY) has introduced the RSCA in the Senate.

The RSCA would change the rules for employer-sponsored 401(k) plans to allow employees aged 50 and older to use plan funds to purchase tax-qualified deferred annuities outside their 401(k) plans without incurring penalties. With limited exceptions, account owners must currently wait until age 59 ½ to access 401(k) funds penalty-free.

In a statement to Sen. Marshall and Sen. Gillibrand, NAIFA President Christopher Gandy, LACP, said:

“Workers across America are increasingly anxious about their financial futures. The bipartisan and bicameral Retirement Simplification and Clarity Act improves access to lifetime income and simplifies retirement decision-making. By modernizing outdated processes and removing unnecessary complexity, the bill helps workers better understand and utilize their savings to generate a pension-like stream of retirement income.”

As NAIFA members meet with their lawmakers in their home districts during the summer congressional recess, they will continue to urge support for the RSCA.