Lawyer husband representative giving dollars to wife, part of marital property. Credit: Ievgen Chabano/Adobe Stock
Lawmakers in the House and Senate have re-introduced legislation that would create protections for spouses who have a 401(k) plan. The Women’s Retirement Protection Act (WPRA) of 2025 would require the consent of both partners in order to take out a 401(k) loan or distribution.
Under current law, one spouse can withdraw 401(k) funds without the other’s knowledge. House Representative Lauren Underwood (D-IL) and Senator Tammy Baldwin (D-WI) reintroduced the legislation to help close the retirement gap and improve women’s financial security. The Federal Thrift Savings Plan already requires spousal consent for almost all distributions.
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“As women strive for economic equality in this country, we must make sure they can retire with dignity,” said Underwood. “That means protecting their financial future and preventing a spouse from draining shared retirement savings without consent.”
“Unfortunately, barriers like unequal pay and time off for caregiving hold too many women back from making this dream a reality,” said Sen. Baldwin. “I am proud to introduce this legislation to extend protections for women in the workforce and ensure more Americans get the hard-earned retirement they deserve.”
Women lag significantly behind their male counterparts in retirement savings—in 2023, their median retirement income was 83.6% of men’s retirement income, according to Sen. Underwood. This is partly because women face systemic barriers, like unequal pay and time out of the workforce for caregiving duties, which make it more difficult to adequately save for retirement.
Related: Women must take ownership of their retirement journeys, says financial expert: Here’s how
The WRPA would also enhance and bolster women’s financial literacy through two methods. First, financial providers would be required to provide a link to the Consumer Financial Protection Bureau in any offer for the sale of a retirement financial product or service. The link would provide information and resources regarding retirement planning and/or retirement security.
The WRPA would also provide:
- Grants through the Department of Labor to establish community-based organizations to improve the financial literacy of women who are of working or retirement age.
- Assistance covering legal fees for women who are pursuing the division of retirement plans in separation and divorce cases. This division occurs using a special separate court order called a Qualified Domestic Relations Order, which is costly and puts them out of reach of the most vulnerable women most in need of protection.
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
