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Tax Relief: Rollover Eligibility for Employee Stock Ownership Plan Price Protection Payments

This law modifies tax rules for Employee Stock Ownership Plans (ESOPs). The main change allows certain 'price protection payments'—money designed to safeguard the value of employee stock—to be rolled over into other retirement accounts without immediate taxation. This enables employees to save more of these funds for retirement, enhancing their long-term financial security.
Key points
Payments protecting the value of employee stock (Price Protection Payments) can now be rolled over into retirement accounts (like IRAs), deferring tax liability.
The changes apply retroactively to certain payments made after December 2019, benefiting individuals who retired, died, or separated due to disability.
The law makes it easier for companies to offer these price protection mechanisms in ESOPs by ensuring such agreements are not considered tax-discriminatory.
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Additional Information
Print number: 118_HR_8435
Sponsor: Rep. Kelly, Mike [R-PA-16]
Process start date: 2024-05-16
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Summarized by: gemini-2.5-flash-preview-09-2025
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 118_HR_8435.

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 2024-05-16.

What are the main provisions?

Key points include:

  • Payments protecting the value of employee stock (Price Protection Payments) can now be rolled over into retirement accounts (like IRAs), deferring tax liability.
  • The changes apply retroactively to certain payments made after December 2019, benefiting individuals who retired, died, or separated due to disability.
  • The law makes it easier for companies to offer these price protection mechanisms in ESOPs by ensuring such agreements are not considered tax-discriminatory.
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. Kelly, Mike [R-PA-16].

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 2025-12-25.

CATEGORIES

Taxes Labor