Retire through Ownership Act Signed Into Law as Public Law 119-124

The Retire through Ownership Act (S. 2403) became law on October 15, 2026, as Public Law 119-124. Sen. Roger Marshall (R-Kansas) introduced it on July 23, 2025, with 1 cosponsor.

What the Law 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 assets if the assets are not securities for which there is a generally recognized market 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.

How It Passed

• October 9, 2025: Passed the Senate by unanimous consent, with an amendment
• September 16, 2026: Passed the House without objection
• October 15, 2026: Signed into law

The text and full legislative history are on Congress.gov.