Retire through Ownership Act

Hozzl · 2026-09-17T08:08:10Z

Explore the details of Senate Bill 2403 Retire through Ownership Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Labor and Employment. Stay informed on legislative developments.

9/17/2026, 8:08 AM

Summary of Bill S 2403

This bill, titled "A bill to amend the Employee Retirement Income Security Act of 1974" and designated as S. 2403 in the 119th Congress, aims to provide a clear definition of adequate consideration for certain closely held stock. The bill, introduced on July 23, 2025, includes provisions related to retirement income security and stock valuation within closely held companies.

Congressional Summary of S 2403

Retire through Ownership Act

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.

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Current Status of Bill S 2403

Bill S 2403 is currently in the status of Passed in House since September 16, 2026. Bill S 2403 was introduced during Congress 119 and was introduced to the Senate on July 23, 2025. Bill S 2403's most recent activity was Motion to reconsider laid on the table Agreed to without objection. as of September 16, 2026

Bipartisan Support of Bill S 2403

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 2403

Primary Policy Focus

Labor and Employment

Alternate Title(s) of Bill S 2403

Retire through Ownership Act

A bill to amend the Employee Retirement Income Security Act of 1974 to provide a clear definition of adequate consideration for certain closely held stock, and for other purposes.