SMART Savings Act of 2026

This bill aims to streamline regulations for individual retirement accounts by amending the Internal Revenue Code of 1986, primarily by exempting individual account plans from certain general prohibited transaction rules. It redefines the term "plan" within Section 4975 to specifically refer to qualified trusts and plans, thereby removing individual retirement accounts from its broader purview. While removing these accounts from the general prohibited transaction framework, the legislation simultaneously preserves and clarifies specific self-dealing prohibitions for individual retirement accounts under Section 408(e)(2)(A). Under these refined rules, an individual retirement account would cease to be tax-exempt if the individual or beneficiary engages in transactions for their own personal interest or receives personal consideration, with an explicit exception for "relationship benefits." These "relationship benefits" include reduced-cost or enhanced products and services where the account's value or fees determine eligibility, and the changes apply to transactions occurring after the bill's enactment.