The SMART Savings Act of 2026 modifies federal rules governing individual retirement accounts and certain employer-sponsored retirement plans. Specifically, the bill exempts these individual account plans from several prohibited transaction rules under the tax code while maintaining restrictions on self-dealing, which prevents account owners from using retirement funds for personal benefit. The legislation allows account holders to receive certain "relationship benefits" such as reduced-cost or enhanced services based on their account value without jeopardizing the tax-exempt status of their retirement accounts. The changes apply to transactions occurring after the bill becomes law and are intended to simplify retirement savings rules for individuals and their financial institutions. The bill received support from Republican senators and was referred to the Senate Finance Committee for review.
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