The SMART Savings Act of 2026 amends federal tax law to exempt certain individual retirement accounts from prohibited transaction rules that currently restrict how these accounts can be invested and managed. The bill narrows the definition of what counts as a "plan" under tax regulations, which effectively allows individual retirement account holders to engage in transactions that would otherwise be prohibited under current law. However, the legislation preserves core protections against self-dealing by maintaining rules that prevent account owners from using their retirement savings for personal benefit, while carving out an exception for "relationship benefits" like discounted fees or products offered based on account value. The changes take effect immediately upon enactment for all transactions occurring after the bill becomes law. This legislation primarily affects individual retirement account owners and financial institutions that manage these accounts.
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