Retire through Ownership Act
S. 2403119th CongressLabor and Employment
- Introduced
- Jul 23, 2025
- Latest action
- Became Public Law 119-124
- Oct 15, 2026
Recorded votes
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Summary
Written by the nonpartisan Congressional Research Service.
Retire through Ownership Act
This act allows the fiduciary of an Employee Stock Ownership Plan (ESOP) to rely on a valuation provided by an independent valuation expert or business appraiser in determining the fair market value of the plan's assets if the assets are not securities for which there is a generally recognized market and the expert or appraiser follows specified methodologies.
In general, ESOPs are defined contribution pension plans where employees accrue shares of their employers' stock in individual accounts as part of their compensation. After separating from employment or retiring, employees receive the cash value of their shares.
Under the act, an independent expert or appraiser must adhere to the methodology established under the Internal Revenue Service Ruling 59-60, which prescribes the factors a professional business appraiser should consider in forming a valuation of the stock for a closely held business.