Most retirement legislation adjusts a dollar limit or a deadline. A bill introduced on July 30, 2026 does something structurally different: it would change which federal agency has a say over what your IRA is allowed to do.
What the Bill Does
The Simplifying Modern Access to Retirement Tools for Savings (SMART Savings) Act — S. 5204 — was introduced by Sen. John Barrasso (R-Wyo.), joined by Sen. Marsha Blackburn (R-Tenn.), with a House companion from Rep. Claudia Tenney (R-N.Y.).
It has three moving parts:
- Remove IRAs from the prohibited transaction rules as administered by the Department of Labor, eliminating what sponsors call duplicative DOL oversight of individual accounts.
- Preserve the ban on self-dealing. An IRA owner who improperly uses account assets for personal benefit still loses the account's tax advantages.
- Clarify access to reduced-cost or enhanced products already permitted in other savings accounts, without an IRA owner or provider needing an individual DOL exemption first.
The sponsors' argument is that the rules governing IRAs were lifted from provisions originally written for large employer pension plans. "Washington red tape shouldn't prevent Americans from saving for their retirement," Barrasso said. Tenney framed it as a cost issue: the system should "encourage Americans to save, not burden them with outdated regulations that drive up costs."
Industry backing is broad — ICI, SIFMA, NAIFA, Finseca, IRI, NAFA and FSI have all endorsed it. ICI's Eric Pan called it "an important step towards a more secure financial future." SIFMA's Kenneth Bentsen said the current rules create "needless cost and complexity."
The Context Savers Are Missing
This bill did not arrive in a vacuum. The DOL's 2024 Retirement Security Rule — which would have treated one-time rollover recommendations as fiduciary advice — never took effect. Texas federal courts enjoined it in mid-2024, the department stopped defending it, and it was vacated entirely in March 2026. Effective April 20, 2026, the DOL restored the 1975 five-part fiduciary test.
So the trend line matters more than any single bill: the rollover conversation is currently governed by a 51-year-old standard, and legislation is now pending that would narrow DOL's IRA role further.
What Would Still Protect You
This is the part worth getting right. Removing DOL authority would not leave IRAs unregulated:
- The self-dealing prohibition survives in the Internal Revenue Code, enforced by the IRS. The penalty is severe and unchanged — a disqualifying transaction can blow up the tax status of the entire account.
- SEC, FINRA, FinCEN and state regulators retain their existing jurisdiction over the firms and representatives selling into IRAs.
- Nothing here changes contribution limits, RMDs, or distribution taxation.
Practical Takeaways
- Treat this as a bill, not a law. S. 5204 was introduced in July 2026 and has not moved. Do not restructure anything in anticipation of it.
- Do not relax on self-dealing. The one rule most likely to destroy a self-directed IRA — personal use of account assets — is explicitly preserved.
- Ask about the standard of care in writing. With the 1975 test back in force, ask any advisor recommending a rollover whether they are acting as a fiduciary on that specific recommendation, and get the answer on paper.
- Note who is lobbying. The endorsements come from the industry that distributes products into IRAs. That does not make the bill wrong, but it tells you whose costs are being reduced.
Sources: Sen. John Barrasso press release — Barrasso Introduces Legislation to Modernize Retirement Savings Regulations (July 30, 2026); SMART Savings Act of 2026, S. 5204, 119th Congress (GovInfo bill status); 401(k) Specialist — New "SMART Savings Act" Seeks to Modernize IRA Rules; NAPA/ASPPA — New Bill Would Remove IRAs From DOL's Regulatory Reach; Bell Nunnally — DOL Vacates the Retirement Security Rule and Reinstates the 1975 Five-Part Fiduciary Test