Women's Retirement Protection Act Mandates Spousal Consent for 401(k) Payouts and Funds $200M in Financial Literacy Grants

The “Women's Retirement Protection Act” is a major piece of legislation aimed squarely at closing the financial gaps that disproportionately affect women in retirement. If you have a 401(k) or similar defined contribution plan, the biggest takeaway is this: your spouse just got a lot more say over when and how you can take money out.

This bill directly addresses the statistics laid out in its findings—namely, that women earn less, take more time off for caregiving, and face higher poverty rates in old age. The core of the bill focuses on three areas: protecting retirement assets during marriage, ensuring consumers get unbiased information, and funding direct assistance for vulnerable women.

Your 401(k) Now Requires a Spousal Signature

Section 3 significantly changes how many retirement plans operate. Previously, certain defined contribution plans (like many 401(k)s) didn’t require spousal consent for distributions, unlike traditional pensions. This bill changes that. Generally, if your plan wasn't already covered by existing survivor rules, it now cannot make a distribution unless your spouse consents in writing, and that consent must be notarized or witnessed by a plan representative.

This is a big deal for financial security. Imagine a scenario where one spouse has been the primary earner and retirement saver. Before this bill, that spouse could potentially cash out a large portion of the 401(k) without the other spouse’s knowledge or permission. Now, if you’re married, you can’t make that move without your partner signing off. This protection kicks in for plan years beginning one year after the law is enacted.

There are, however, some practical exceptions. You don't need consent for Required Minimum Distributions (RMDs) once you hit retirement age, or if the distribution is less than 25% of the account balance—but you can only use that 25% exception once. Also, if you roll your entire benefit into a new IRA, the spousal consent requirements still apply to how you name the beneficiary on that new account, ensuring the protection follows the money.

$200 Million for Literacy and Legal Help

Beyond asset protection, the bill authorizes two major grant programs, each receiving $100 million annually starting in fiscal year 2026. These grants are designed to fund community organizations that work directly with women.

Section 6 funds financial literacy programs, requiring grant awards of at least $250,000 to eligible community groups. This means more resources for workshops and counseling focused on retirement planning, budgeting, and general finance concepts for working and retired women. For the busy professional trying to figure out their company's vesting schedule, or the trade worker looking to maximize their IRA, this means more accessible, local, and free educational resources.

Section 7 targets a more specific, but crucial, area: helping low-income women and domestic violence survivors secure their entitled assets during divorce. When a couple splits, retirement savings are often the second largest asset after the house. Getting those assets requires a complex legal document called a Qualified Domestic Relations Order (QDRO). This grant program will fund community organizations to provide the hands-on legal and administrative help needed to prepare, obtain, and enforce those QDROs. This is a massive win for vulnerable individuals who often can't afford the legal fees required to access money they are legally owed.

Unbiased Information Required at Checkout

Finally, Section 5 focuses on consumer transparency. If a financial provider is trying to sell you a retirement product or service, they must now provide a link to the Bureau of Consumer Financial Protection (CFPB) website. The goal is to ensure that when you’re presented with a sales pitch, you also get easy access to independent, government-vetted information about retirement planning. The Financial Literacy and Education Commission will decide the exact link and format, ensuring consistency across the industry. This is a sensible step to help consumers cross-reference sales information with unbiased federal resources before signing on the dotted line.