Employee Ownership Fairness Act of 2026 modifies ESOPs to allow full beneficial ownership and retirement savings contributions.

The Employee Ownership Fairness Act of 2026 amends the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code to enhance employee stock ownership plans (ESOPs). It allows ESOP participants to benefit from the full amount of beneficial ownership accrued in the plan while also fully realizing the benefits of saving for retirement in a defined contribution plan. The Act modifies the annual additions calculation to exclude employer stock contributions and loan repayments for ESOPs. It also exempts ESOP forfeitures from being counted as annual additions.

Employee Ownership Fairness Act of 2026 modifies ESOPs to allow full beneficial ownership and retirement savings contributions.

The Employee Ownership Fairness Act of 2026 amends the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code to enhance employee stock ownership plans (ESOPs). It allows ESOP participants to benefit from the full amount of beneficial ownership accrued in the plan while also fully realizing the benefits of saving for retirement in a defined contribution plan. The Act modifies the annual additions calculation to exclude employer stock contributions and loan repayments for ESOPs. It also exempts ESOP forfeitures from being counted as annual additions.