# 119-s-5204: SMART Savings Act of 2026

119-s-5204, SMART Savings Act of 2026, is a 119th Congress bill sponsored by Sen. Barrasso, John [R-WY] (R-WY); status introduced; PRIA reads it as touching household money (as of 2026-08-26).

- Canonical: https://policyrisk.com/legislation/119-s-5204
- As of: 2026-08-26
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-5204
- Congress: 119
- Title: SMART Savings Act of 2026
- Status: introduced
- Introduced: 2026-07-30
- Sponsor: Sen. Barrasso, John [R-WY] (R-WY)
- Cosponsors: 2
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-26

## Summary

**This bill would narrow which individual account plans are subject to federal prohibited-transaction rules** by redefining "plan" to cover only certain 401(a) trusts and 403(a) plans that are tax-exempt under section 501(a). It would also reshape section 4975's prohibited-transaction framework and set a clarified self-dealing rule for individual retirement accounts that defines a carve-out for certain "relationship benefits." - Savers with IRAs: An IRA would cease to be an IRA for the taxable year if the owner or beneficiary engages in a transaction using plan income or assets for personal benefit or receives consideration tied to that transaction, except for defined "relationship benefits." The bill also treats separate employer-maintained accounts as separate IRAs. - Employer and tax-exempt plans: By linking the definition of "plan" to 401(a) trusts and 403(a) plans exempt under 501(a), the bill narrows which individual-account arrangements are treated as plans under section 4975 and thus which accounts face those prohibited-transaction rules. - Advisers, employers, and other parties: The bill strikes several paragraphs in section 4975(c) and redesignates subsection language, changing the structure of prohibited transactions that apply to covered plans and prompting changes to compliance and transaction treatment. Changes apply to transactions after the date of enactment.

## Cosponsors (2)

- Sen. Blackburn, Marsha [R-TN] (R-TN), 2026-07-30T00:00:00.000Z
- Sen. Daines, Steve [R-MT] (R-MT), 2026-08-06T00:00:00.000Z

## Provisions PRIA read

- IRAs could lose tax status: cost, high. This bill would change IRA self-dealing rules. If, in any taxable year, you or your beneficiary use IRA income or assets for your own interest or get personal payment from a party dealing with the plan (other than defined "relationship benefits"), the account would stop being an IRA as of the first…
- New definition of covered plans: mixed, medium. This bill would redefine which employer or association accounts count as a "plan" for prohibited-transaction rules. A plan would only be a 401(a) trust or a 403(a) plan that is tax-exempt under section 501(a). The bill would also remove several paragraphs from the prohibited-transaction rules and r…

## Related bills

- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-4952: Protecting American Taxpayers Act
- 119-s-1748: Kids Online Safety Act
- 119-s-292: Educational Choice for Children Act of 2025
- 119-s-3752: SAVE America Act
- 119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026

## Sources
- [119-s-5204 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/5204)

## Related
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-4952: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4952)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-292: Educational Choice for Children Act of 2025](https://policyrisk.com/legislation/119-s-292)
- [119-s-3752: SAVE America Act](https://policyrisk.com/legislation/119-s-3752)
- [119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026](https://policyrisk.com/legislation/119-s-5025)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-5204 (as of 2026-08-26).