Referred to the Committee on Health, Education, Labor, and Pensions.
The bill amends ERISA and the Internal Revenue Code to treat employer stock contributions to ESOPs, and contributions that repay ESOP acquisition loans, as excluded from certain employer deduction and annual-addition limits (sections 404 and 415). It also requires section 404 limits to be applied separately to ESOPs and other defined contribution plans, and excludes forfeitures from ESOP annual additions.
Liberals stress retirement concentration and want stronger safeguards
Relative to its intended legislative type, this bill is a clearly articulated and specifically drafted substantive statutory change that amends ERISA and the Internal Revenue Code to exclude employer stock contributions and certain loan repayments from counting toward limits under sections 404 and 415, and to require separate application of limits for ESOPs.
The bill amends ERISA and the Internal Revenue Code to treat employer stock contributions to ESOPs, and contributions that repay ESOP acquisition loans, as excluded from certain employer deduction and annual-addition limits (sections 404 and 415).
It also requires section 404 limits to be applied separately to ESOPs and other defined contribution plans, and excludes forfeitures from ESOP annual additions.
The changes apply to plan years beginning after enactment.
Narrow, administrable change with bipartisan potential, but fiscal impact and absence of offsets, plus legislative calendar competition, reduce odds.
Relative to its intended legislative type, this bill is a clearly articulated and specifically drafted substantive statutory change that amends ERISA and the Internal Revenue Code to exclude employer stock contributions and certain loan repayments from counting toward limits under sections 404 and 415, and to require separate application of limits for ESOPs. The bill includes a clear effective date and precise amendment language.
Liberals stress retirement concentration and want stronger safeguards
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals stress retirement concentration and want stronger safeguards
Likely cautiously supportive: welcomes policies that expand worker ownership and preserve employees' ability to contribute to defined contribution plans, but worries about concentrated retirement risk and public cost.
Will seek stronger worker protections, diversification and transparency.
Modestly supportive but pragmatic: recognizes benefits for worker ownership and retirement saving while demanding fiscal clarity and anti-abuse protections.
Would favor technical fixes and oversight to limit unintended consequences.
Generally supportive: favors policies that enable private-sector solutions, employee ownership, and fewer practical barriers to business transitions.
Some conservatives may still question the implicit tax expenditure magnitude.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, administrable change with bipartisan potential, but fiscal impact and absence of offsets, plus legislative calendar competition, reduce odds.
The bill has not accumulated any surfaced votes yet.
Liberals stress retirement concentration and want stronger safeguards
Narrow, administrable change with bipartisan potential, but fiscal impact and absence of offsets, plus legislative calendar competition, re…
Relative to its intended legislative type, this bill is a clearly articulated and specifically drafted substantive statutory change that amends ERISA and the Internal Revenue Code to exclude employer stock contributions…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.