Employee Ownership Fairness Act of 2025

The Employee Ownership Fairness Act of 2025 would adjust federal retirement rules to help employees in Employee Stock Ownership Plans (ESOPs) better manage their retirement savings. Currently, ESOP contributions tied to company growth can cause employees to exceed annual limits for other retirement plans (like 401(k)s), forcing employers to deny matching contributions they’d otherwise provide. The bill changes how contribution limits are calculated by excluding employer stock contributions and loan repayments used to buy company shares from the limits, and requires ESOPs to be treated separately from other retirement plans. This would allow ESOP participants to diversify their savings without losing access to employer matching contributions they’d otherwise miss.