Proposal to Alleviate DOL IRA Oversight Introduced

Senators John Barrasso (R-WY) and cosponsor Marsha Blackburn (R-TN) have introduced the Simplifying Modern Access to Retirement Tools for Savings Act, or SMART Savings Act. According to a press release, the bill would do the following. 

• Remove IRAs from prohibited transaction rules, eliminating duplicative DOL authority over IRAs and preventing future regulations that restrict savers’ access to financial advice;

• Preserve a clear ban on self-dealing, so an IRA owner who improperly uses account assets for their own personal benefit loses the account’s tax advantages; and 

• Clarify that IRA savers can access reduced-cost or enhanced products and services already allowable through other types of savings accounts, without needing individual DOL exemptions.

Existing protections from state regulators, the U.S. Securities and Exchange Commission, Financial Industry Regulatory Authority, and Financial Crimes Enforcement Network would remain in place. Companion legislation was introduced in the House by Representative Claudia Tenney (R-NY).