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Congress·In Committee·12 months ago

Congress Proposes New Rules Requiring Spousal Consent for 401(k) Withdrawals to Protect Women's Retirement

Also known as: Women's Retirement Protection Act

Legislative Progress

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Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
Economy FinanceLabor EmploymentCivil Rights

Milestones

2 milestones2 actions
Mar 11, 2025House

Referred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Mar 11, 2025

Introduced in House

Related News

2 articles
BenefitsPRO·11 months ago

Both spouses must consent to 401(k) withdrawals, says new legislation introduced in House, Senate

The Women's Retirement Protection Act (WPRA) of 2025 would require the consent of both partners to take out a 401(k) loan or distribution. Currently, one spouse can withdraw funds without the other's knowledge, a gap the bill seeks to close to improve women's long-term financial security.

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401k Specialist·12 months ago

Lawmakers Push Spousal Protection Legislation in 401(k) Plans

Rep. Lauren Underwood and Sens. Tammy Baldwin and Patty Murray reintroduced the Women's Retirement Protection Act. The legislation would establish spousal protections for defined contribution plans, preventing one spouse from unilaterally withdrawing shared retirement assets.

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Source Information

Document Type

Congressional Bill

Official Title

Women's Retirement Protection Act

Bill NumberHR 2023
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Education and Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(15)
D: 14R: 1

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