Employee Ownership Fairness Act of 2026

The Employee Ownership Fairness Act of 2026 modifies tax rules for Employee Stock Ownership Plans (ESOPs) to help workers better manage their retirement savings. Currently, money contributed to ESOPs counts toward annual contribution limits, which can prevent employees from making additional contributions to other retirement accounts or receiving full employer matches. This bill changes those limits so that stock contributions and loan repayments for ESOPs do not count toward the caps, allowing employees to diversify their savings more easily. The changes apply to plan years starting after the law is enacted and affect companies that use ESOPs to provide employee ownership.