S. 2403 · 119th Congress · Labor and Employment
Retire through Ownership Act
Allows ESOP fiduciaries to use independent valuations for non-publicly traded securities. AI-read
What it does
This bill 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 securities if the securities are not traded on a national securities exchange (i.e., not publicly traded) 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 bill, 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.
Summary by the Congressional Research Service, Oct 9, 2025 (Passed Senate). CRS summarizes bills impartially; it does not take positions.
Roll call votes
| Date | Question | Party split (yea) | Result |
|---|---|---|---|
| Sep 16, 2026 House roll 674 |
On Motion to Suspend the Rules and PassRetire through Ownership Act | D 209–0 · R 191–14 · I 1–0 |
Passed 401–14 |
What members said about it
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Congressman Allen's Retire through Ownership Act Headed to President Trump's Desk
Yesterday, the U.S. House of Representatives passed S. 2403, the Retire through Ownership Act.
“One of the many lessons I learned over my decades-long career as a small business owner is that true success is measured by the success of your employees. ESOPs are a valuable tool to build wealth for retirement and give employees an ownership stake in their employer. The Retire through Ownership Act will help…”
Latest action
Sep 16, 2026 · Motion to reconsider laid on the table Agreed to without objection.