Retirement Rollover Flexibility Act

This bill amends the Internal Revenue Code to allow rollover contributions from Roth IRAs to designated Roth accounts in employer-sponsored retirement plans.

Sec. 2, Rollover contributions from Roth IRAs to designated Roth accounts: The bill adds a new rule allowing a direct trustee-to-trustee transfer of the entire amount from an eligible Roth IRA or in an automatic portability transaction to a designated Roth account without being treated as a taxable distribution. An eligible Roth IRA is defined as the only Roth IRA (other than a certain type) maintained for the individual during the tax year, with a balance not exceeding a specified amount. The bill also treats such rollover contributions as investment in the contract for tax purposes, and coordinates the nonexclusion period for Roth accounts to include the first taxable year of contributions to the source plan in automatic portability cases. These changes apply to amounts paid or distributed after the date of enactment.