Retire through Ownership Act
Latest action (15 Oct 2026): Became Public Law No: 119-124.
What this bill does
The Retire through Ownership Act would allow fiduciaries of Employee Stock Ownership Plans (ESOPs) to rely on valuations from independent experts for company stock that is not publicly traded. These valuations must follow specific methodologies outlined in IRS Revenue Ruling 59-60. ESOPs are retirement plans where employees acquire company stock as part of their compensation and receive its cash value upon leaving employment.
This bill specifically affects ESOP fiduciaries and the employees who participate in these plans. By providing a clearer standard for valuing closely held stock, it aims to support the operation of ESOPs. The bill does not alter a fiduciary's fundamental duties under Section 404 of the Employee Retirement Income Security Act of 1974, nor does it expand the Secretary of Labor's regulatory authority beyond what existed before enactment.
The bill has passed both the House of Representatives and the Senate. Its next step is to be sent to the President for signature into law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
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.
Timeline
15 Oct 2026
Became Public Law No: 119-124.
Common questions
- What does S. 2403 do?
- The Retire through Ownership Act would allow fiduciaries of Employee Stock Ownership Plans (ESOPs) to rely on valuations from independent experts for company stock that is not publicly traded. These valuations must follow specific methodologies outlined in IRS Revenue Ruling 59-60. ESOPs are retirement plans where employees acquire company stock as part of their compensation and receive its cash value upon leaving employment. This bill specifically affects ESOP fiduciaries and the employees who participate in these plans. By providing a clearer standard for valuing closely held stock, it aims to support the operation of ESOPs. The bill does not alter a fiduciary's fundamental duties under Section 404 of the Employee Retirement Income Security Act of 1974, nor does it expand the Secretary of Labor's regulatory authority beyond what existed before enactment. The bill has passed both the House of Representatives and the Senate. Its next step is to be sent to the President for signature into law.
- Has S. 2403 become law?
- Yes. S. 2403 has been enacted. Status last updated 15 Oct 2026.
- Who sponsored S. 2403?
- S. 2403 was sponsored by Sen. Marshall, Roger [R-KS] (R-KS), with 1 cosponsor.
- What's the latest action on S. 2403?
- Became Public Law No: 119-124. (15 Oct 2026).
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