Lets workers with company stock plans save more for retirement and get full employer matches.
This bill would let employees who own company stock through an Employee Stock Ownership Plan (ESOP) save more in their other retirement accounts, like 401(k)s. Currently, rules can limit how much they can put into these plans or prevent them from getting employer matching funds. The bill would change tax rules to apply these limits separately, helping workers build more diverse retirement savings.
Today, the money put into employee stock ownership plans (ESOPs) and other retirement plans like 401(k)s are added together when calculating federal contribution limits. This can stop ESOP participants from saving as much as they want in their 401(k)s or getting full employer matches. This bill would change tax rules so that certain ESOP contributions and forfeitures are not counted, and the limits are applied separately, allowing workers to save more in both types of plans.
S 1727 · 119th Congress · May 13, 2025 · AI Summary by gemini-2.5-flash · 9/10
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2 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.