Expansion of S corporation eligible shareholders to include IRAs

(a) In General Section 1361(c)(2)(A)(vi) is amended to read as follows: (vi) A trust which constitutes an individual retirement account under section 408(a), including one designated as a Roth IRA under section 408A.. (b) Sale of Stock in IRA Relating to S Corporation Election Exempt From Prohibited Transaction Rules Section 4975(d)(16) is amended— (1) by striking subparagraphs (A) and (B) and by redesignating subparagraphs (C), (D), (E), and (F) as subparagraphs (A), (B), (C), and (D), respectively, and (2) by striking such bank or company in subparagraph (A) (as so redesignated) and inserting the issuer of such stock. (c) Effective Date The amendments made by this section shall take effect on January 1, 2026.