Women's Retirement Protection Act

Key Points

• Congress is considering a bill to make sure spouses have a say in how retirement money is spent. Currently, many retirement plans like 401(k)s allow one person to take out money without telling their spouse. This bill would require written, notarized consent from a spouse before most large withdrawals or loans can be made.
• The plan aims to help women, who often have less retirement savings than men due to lower pay and time taken off for caregiving. Statistics show that women over 80 are more likely to live in poverty than men. By requiring both spouses to agree on withdrawals, the bill tries to ensure that shared household savings aren't emptied by one person.
• There are some exceptions to the consent rule. Spouses wouldn't need to sign off on very small withdrawals (less than 25% of the account) or if half of the money is moved directly into the spouse’s own retirement account. It also wouldn't apply if a spouse cannot be located or if the couple has been married for less than a year.
• The bill would provide $200 million in yearly grants. Half of this money would go toward teaching women about financial planning. The other half would help low-income women and survivors of domestic violence get their fair share of retirement assets during a divorce, which can often be expensive and complicated to handle.
• If passed, these rules would generally start about one year later. Financial companies would also be required to provide clear links to government websites that offer free tools and advice on how to plan for a stable retirement.

Votes

No votes have been recorded for this legislation yet.