Bill Would Provide Tax Exclusion for Employer Stock Held for 10 Years

Congressman Dan Rohrabacher (R-CA) has introduced H.R. 6419, which would exclude employer stock received as part of a qualifying distribution from a defined contribution plan and then held for at least 10 years. Because holding stock in a closely held company for that long is usually impractical, this would apply primarily to public companies. The bill has four Republican cosponsors. The bill has been referred to the House Ways and Means Committee. Action during this Congress is very unlikely, and the bill would face opposition in the future from people concerned that holding a substantial amount of employer stock after distribution would be financially risky for many people.