SMART Savings Act of 2026

This bill would change federal tax rules on prohibited transactions so that the excise tax on these transactions applies only to employer retirement plan trusts under section 401(a) and annuity plans under section 403(a). Individual retirement accounts (IRAs) and similar tax-favored accounts would no longer fall under that definition, and the special rules for those accounts in the prohibited transaction section would be removed. An IRA would still lose its tax status if the account owner or beneficiary uses the account's income or assets for personal benefit. However, receiving 'relationship benefits' would not count as self-dealing. These are reduced-cost, free, or improved products or services offered based on the account's value or fees. The changes would apply to transactions after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Claudia Tenney Republican sponsor
• 0 cosponsors