Employee Ownership Fairness Act of 2025

Key Points

• This bill changes how the government counts money put into employee stock ownership plans. Right now, if a company gives a worker a lot of stock, it can stop that worker from putting their own money into a 401(k) because they hit a legal limit.
• The plan would stop counting company stock and loan payments toward the yearly cap on retirement contributions. This means workers at successful employee-owned companies can still save for retirement in other ways without being penalized for their company's growth.
• It helps workers spread out their savings. Instead of having all their retirement money tied up in their company's stock, they can more easily put money into different types of investments to protect their future.
• The changes would apply to retirement plan years starting after the bill is signed into law. It aims to fix a situation where workers are forced to choose between owning a piece of their company and saving for retirement on their own.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.