On August 12, the Treasury Department and the Internal Revenue Service (IRS) issued Notice 2026-49, which includes sample forms for retirement savings plan rollovers to be used by both distributing and receiving retirement plans; and sample forms, including the procedures and protocols, to be used in trustee-to-trustee transfers, again for both transferring and receiving plans.

On September 2, the House Education & the Workforce Committee’s Subcommittee on Workforce Protections held a hearing on how to relieve burdensome and unnecessary regulations. Subcommittee Chair Rep. Ryan Mackenzie (R-PA) described the purpose of the hearing as identification of ways to cut red tape and establish a “reasonable regulatory environment that supports growth and prosperity.”

In Fact Sheet 2026-13, the Internal Revenue Service (IRS) updated its rules for the new overtime (OT) pay tax deduction. The updates are particularly focused on employer obligations regarding the deduction. The updated guidance is in the form of frequently-asked questions (FAQs). Generally, the updates include:

In Notice 2026-28, the IRS and Treasury provide guidance on the employer tax credit for providing paid family and medical leave. The guidance modifies Notice 2018-71, focusing on the premium method for calculating the tax credit. It uses a question-and-answer format.

H.R. 2978, known as the GUARD Act (Guarding Unprotected Aging Retirees from Deception Act), is a bipartisan bill introduced in the 119th Congress by Representatives Zach Nunn (R-IA) and Josh Gottheimer (D-NJ) to combat elder financial fraud, scams, and cryptocurrency-based confidence schemes.

At the end of July the House recessed until August 31; the Senate followed suit on August 8, until after Labor Day. Congress left for five weeks with many unresolved, pressing issues, including government funding and a budget bill that could pull in NAIFA issues in September.

In an effort to prevent a potential government shutdown on October 1 (the start of the federal government’s new fiscal year), Congressional Republicans are prepping legislation to keep the government fully funded until at least mid-December. The House and Senate approaches differ, but both would generally continue current funding levels until after the November mid-term elections.

Congressional Republicans are working on another all-GOP budget reconciliation bill that must first be authorized by a Congressional Budget Resolution (CBR). The House CBR (H.Con.Res.113) is narrow, providing funding only for Defense; Agriculture; and incentives for the States to enact stricter voter identification, proof of citizenship, and other voting rules. The CBR is controversial even among Republicans, and the issues it excludes have triggered promises from leadership to do yet another all-GOP reconciliation bill during lame duck, after the November elections.

The top Democrats on the tax-writing Senate Finance and House Ways & Means Committees have introduced legislation to scale back on multi-million dollar IRAs that they say are used primarily as tax shelters rather than as retirement savings vehicles. Introduced by ranking members Sen. Ron Wyden (D-OR)/Finance and Rep. Richard Neal (D-MA)/Ways & Means, S. 5040 and H.R. 9813 would:

On July 30, Senate Finance Committee Democrats released a policy paper discussing ways to get to universal, affordable health care coverage. The committee is also asking for input on these and other ways to achieve universal coverage of health care.

The Senate Finance Committee said it will look at all options to shore up the Social Security program’s finances, including raising the payroll cap, adjusting benefits, establishing a commission to recommend changes for Congress to consider on a fast-track legislative basis, and establishing what amounts to private sector investment accounts for Social Security beneficiary contributions. The committee held a hearing on August 5 to explore these and other ideas.

In Notice 2026-48, the Internal Revenue Service (IRS) and Treasury announced an “intent to propose regulations regarding the federal Saver’s Match program, which beings in 2027.” The Notice describes anticipated Saver’s Match rules, and requests comments as the agencies consider future proposed regulations.

The nomination of Keith Sonderling, President Trump’s pick to head the Department of Labor (DOL), has been approved by the committee of jurisdiction and now awaits a confirmation vote by the full Senate. Sonderling is currently Acting DOL Secretary.

On August 7 the Senate approved Cameron Hamilton as Federal Emergency Management Agency (FEMA) Administrator. Hamilton returns to the agency after having been ousted early in 2025 as FEMA’s acting head for resisting calls to eliminate the agency.

The Department of the Treasury and the Internal Revenue Service issued proposed regulations providing guidance to employers that choose to make contributions to section 530A (“Trump”) accounts for employees or their dependents. The proposed regulations also clarify nondiscrimination requirements for employers offering Trump account contribution programs and dependent care assistance programs.

Congress is embroiled in a challenging month, with government funding, new taxes, and other high-profile and controversial issues facing lawmakers ahead of their scheduled August recess. The sudden passing of Senator Lindsey Graham (R-SC), Chair of the Senate Budget Committee, will further complicate the ability to move legislation. Among the issues of interest to NAIFA are potential tax proposals that would index capital gains, increase the deduction for non-corporate business income, and impose new tax rules on cryptocurrency; offsetting tax increases; and health care affordability.

The Trump Administration has launched Trump Accounts, the new savings accounts for children program. Included in the July 4 launch were links to Trump Account apps, a list of financial institutions that will be administering the accounts, and a summary of how parents can set up Trump Accounts for their children. NAIFA supports the Trump Accounts program, and has pledged to help clients and prospects participate in it.

On July 1, the House Education and the Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions held a hearing on the potential for direct health care contracts to reduce health care costs. The hearing generated considerable interest from both Republicans and Democrats on the subcommittee.

On June 30, in a rare bipartisan 51 to 0 vote, the House Committee on Financial Services approved H,R.7187, the Clarity for Compensation Act. The NAIFA-supported bill—it was a key element lobbied for at the May Congressional Conference—now heads to the House floor for a vote. It then must be approved by the Senate.

In comments submitted in connection with the Department of Labor’s (DOL’s) proposed regulation regarding use of alternative investments in retirement plans, retirement industry representatives are encouraging the rule writers to include in their final rule specific examples that demonstrate how a fiduciary can include a collective investment trust (CIT) in a retirement plan’s investment options and still satisfy the proposed new rule through use of its safe harbor.