S 1839

This bill, the Generating Retirement Ownership through Long-Term Holding Act, aims to encourage long-term retirement savings by allowing individuals to defer recognizing capital gains when they automatically reinvest dividend distributions from regulated investment companies. Specifically, it prevents recognition of gain when dividends are reinvested in the same company, but requires the gain to be recognized upon a later sale of those shares or upon the individual’s death. The bill also clarifies definitions and establishes a holding period for shares acquired through reinvestment.