SMART Savings Act of 2026
Latest action (3 Aug 2026): Introduced
What this bill does
H.R. 10039, the SMART Savings Act of 2026, would amend the Internal Revenue Code's prohibited transaction rules under section 4975. It narrows the definition of "plan" subject to those rules to tax-exempt trusts and plans described in sections 401(a) and 403(a), removing individual retirement accounts (IRAs) and other individual account plans from coverage under section 4975's excise tax provisions. Several related paragraphs listing specific prohibited transactions are struck and renumbered accordingly.
The bill separately amends section 408(e), which governs IRA self-dealing. It preserves the existing rule that an IRA loses its tax-favored status if the account holder uses its assets for personal benefit, but adds an exception for "relationship benefits"—such as reduced-cost, no-cost, or enhanced products or services offered based on an IRA's account value or the fees paid for related services.
The changes would affect IRA owners, financial institutions and advisers administering IRAs, and employer-sponsored 401(a) and 403(a) retirement plans, which remain subject to the existing prohibited transaction framework. The amendments would apply to transactions occurring after enactment.
The bill was introduced on August 3, 2026, by Rep. Claudia Tenney and referred to the House Committee on Ways and Means. No further action has been recorded.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on August 3, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 10039 do?
- H.R. 10039, the SMART Savings Act of 2026, would amend the Internal Revenue Code's prohibited transaction rules under section 4975. It narrows the definition of "plan" subject to those rules to tax-exempt trusts and plans described in sections 401(a) and 403(a), removing individual retirement accounts (IRAs) and other individual account plans from coverage under section 4975's excise tax provisions. Several related paragraphs listing specific prohibited transactions are struck and renumbered accordingly. The bill separately amends section 408(e), which governs IRA self-dealing. It preserves the existing rule that an IRA loses its tax-favored status if the account holder uses its assets for personal benefit, but adds an exception for "relationship benefits"—such as reduced-cost, no-cost, or enhanced products or services offered based on an IRA's account value or the fees paid for related services. The changes would affect IRA owners, financial institutions and advisers administering IRAs, and employer-sponsored 401(a) and 403(a) retirement plans, which remain subject to the existing prohibited transaction framework. The amendments would apply to transactions occurring after enactment. The bill was introduced on August 3, 2026, by Rep. Claudia Tenney and referred to the House Committee on Ways and Means. No further action has been recorded.
- Has H.R. 10039 become law?
- Not yet. As of 3 Aug 2026, H.R. 10039 is introduced.
- Who sponsored H.R. 10039?
- H.R. 10039 was sponsored by Rep. Claudia Tenney [R-NY24] (Republican-NY), with 0 cosponsors.
- What's the latest action on H.R. 10039?
- Introduced (3 Aug 2026).
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