SMART Savings Act of 2026

The SMART Savings Act of 2026 amends federal tax laws to exempt individual retirement accounts, such as IRAs and Keogh plans, from specific prohibited transaction rules that currently restrict how these accounts can be used for certain business activities. By removing these restrictions, the bill allows account holders to engage in transactions involving their retirement funds without triggering immediate penalties or disqualification, provided they do not engage in self-dealing. The legislation explicitly preserves existing prohibitions against self-dealing, ensuring that individuals cannot use their retirement assets for personal gain outside of defined relationship benefits. These changes apply to all transactions occurring after the date the act is enacted.