Retire through Ownership Act

This bill sets a clear rule for how employee stock ownership plans (ESOPs) can value stock in private, closely held companies. It says plan managers can rely, in good faith, on an independent expert’s valuation if the expert uses the standard IRS guidelines known as Revenue Ruling 59–60 to figure out fair market value. This aims to make the process clearer and reduce doubt or disputes about what the stock is worth in these retirement plans.

By spelling out what counts as “adequate consideration,” the bill is meant to make it easier and safer for companies to offer employee ownership through ESOPs, which can help workers build retirement savings through shares of their employer. The change applies to valuations made on or after the day the bill becomes law.

• Who is affected: Employees and employers using ESOPs in private companies; plan managers and fiduciaries; independent valuation experts.
• What changes: Plan managers can rely on independent valuations that follow IRS Revenue Ruling 59–60 methods to set fair market value for private company stock in ESOPs.
• When: Applies to valuations made on or after enactment.