Retire through Ownership Act

The law gives plan fiduciaries a clearer basis for using outside valuations while preserving their existing duties and federal oversight.

What the law does ​

• Allows good-faith reliance on an independent valuation expert or business appraiser.
• Requires the expert to follow IRS Revenue Ruling 59-60 valuation principles and methods, including later updates.
• Preserves the Secretary of Labor’s rulemaking authority without expanding authority over the meaning of adequate consideration.
• Keeps existing fiduciary duties unchanged.
• Applies to covered valuations made on or after October 15, 2026.

Who it affects ​

• Employee stock ownership plan fiduciaries.
• Independent valuation experts and business appraisers.
• Employees participating in employee stock ownership plans.

Breakdown ​

Retire through Ownership Act ​

The law allows an employee stock ownership plan fiduciary to rely in good faith on an independent expert’s valuation of closely held assets when the expert uses IRS-approved valuation principles and methods. It applies to valuation determinations made on or after October 15, 2026, while preserving existing fiduciary duties and the Labor Secretary’s regulatory authority.

Key takeaways

• Employee stock ownership plan fiduciaries may rely in good faith on valuations provided by independent valuation experts or business appraisers.
• The independent expert must use the principles and methods in IRS Revenue Ruling 59-60, including later IRS updates to that guidance.
• The law does not limit the Labor Secretary’s ability to issue regulations interpreting this valuation rule.
• The law does not expand the Labor Secretary’s authority over the meaning of adequate consideration.
• The law does not change the fiduciary duties that apply to employee stock ownership plan fiduciaries.
• The new rule applies to covered valuation determinations made on or after October 15, 2026.