Generating Retirement Ownership through Long-Term Holding

This bill would change the tax rules so people can delay paying taxes on capital gains distributions they reinvest from certain investment funds regulated by the government (called “regulated investment companies”). In short, if you receive a capital gains payout from one of these funds and choose to reinvest it, you could put off recognizing it as income until a later time, instead of right away. The bill creates a new section for “reinvested capital gain dividends” to make this possible.

Key points:

• Who is affected: Individual investors who reinvest capital gains distributions from regulated investment companies.
• What changes: Lets these investors defer recognizing those reinvested distributions for tax purposes.
• When: The provided text does not specify an effective date.