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Tax Changes: Easier Rollovers for ESOP Price Protection Payments

This bill amends tax rules for Employee Stock Ownership Plans (ESOPs). It allows certain payments, designed to protect the value of company stock, to be treated as eligible for tax-free rollovers. This could impact how individuals manage their retirement savings and company stock investments.
Key points
Price protection payments from ESOPs, which safeguard against stock value drops, can now be rolled over into other retirement accounts without immediate taxation.
The new rules apply to payments made after December 12, 2019, potentially affecting past tax filings.
Price protection agreements will not be considered discriminatory, even if they favor highly compensated employees, offering companies more flexibility.
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Status:
Expired
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Additional Information
Print number: 117_HR_9286
Sponsor: Rep. Kind, Ron [D-WI-3]
Process start date: 2022-11-10
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to treat certain price protection payments as eligible rollover distributions, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_9286.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-11-10.

What are the main provisions?

Key points include:

  • Price protection payments from ESOPs, which safeguard against stock value drops, can now be rolled over into other retirement accounts without immediate taxation.
  • The new rules apply to payments made after December 12, 2019, potentially affecting past tax filings.
  • Price protection agreements will not be considered discriminatory, even if they favor highly compensated employees, offering companies more flexibility.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Kind, Ron [D-WI-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Labor