Retire through Ownership Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill, the Retire through Ownership Act, amends the Employee Retirement Income Security Act (ERISA) to clarify how the value of stock held in employee stock ownership plans (ESOPs) is determined. Specifically, it provides guidance for fiduciaries assessing ‘adequate consideration’ for closely held stock, referencing a specific IRS Revenue Ruling. This aims to provide more certainty in valuing these types of investments within retirement plans.
Key provisions
- Defines ‘adequate consideration’ for closely held stock in ERISA plans.
- References IRS Revenue Ruling 59–60 for valuation methodologies.
- Redesignates and renumbers existing text within the ERISA statute.
- Allows fiduciaries to rely on IRS guidance for valuation purposes.
Who is affected
- Employees
- Employee Stock Ownership Plans (ESOPs)
- Fiduciaries of ESOPs
- Retirement Plan Participants
- Financial Institutions
Notable changes
- Introduces a reference to a specific IRS Revenue Ruling for valuation guidance.
- Clarifies the role of fiduciaries in determining stock value.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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