# 116-hr-8606: To defer the tax of certain sales of employer stock and reduce certain retirement-related excise taxes, and for other purposes.

116-hr-8606, To defer the tax of certain sales of employer stock and reduce certain retirement-related excise taxes, and for other purposes., is a 116th Congress bill sponsored by Rep. Kind, Ron [D-WI-3] (D-WI); status Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/116-hr-8606
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 116-hr-8606
- Congress: 116
- Title: To defer the tax of certain sales of employer stock and reduce certain retirement-related excise taxes, and for other purposes.
- Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced: 2020-10-16
- Sponsor: Rep. Kind, Ron [D-WI-3] (D-WI)
- Cosponsors: 2
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

This bill extends to all domestic corporations (including S corporations) the deferral of tax on certain sales of employer stock to employee stock ownership plans (ESOPs) and reduces certain retirement-related excise taxes. Specifically, the bill reduces excise tax rates of certain excess accumulations in tax-exempt retirement plans and on failures to take required minimum distributions from such plans. It also allows employers who establish a tax-exempt 403(b) pension plan to participate in a multiple employer plan. The bill extends the tax credit for small employer pension plan startup costs to employers that join an existing plan.

## Cosponsors (2)

- Rep. Kelly, Mike [R-PA-16] (R-PA), 2020-10-16T00:00:00.000Z
- Rep. Smith, Jason [R-MO-8] (R-MO), 2020-10-16T00:00:00.000Z

## Related bills

- 116-hr-8696: Securing a Strong Retirement Act of 2020
- 116-hr-7659: Ensuring Parity in MA for Audio-Only Telehealth Act of 2020
- 116-hr-5534: Comprehensive Immunosuppressive Drug Coverage for Kidney Transplant Patients Act of 2020
- 116-hr-4305: PAWS for Veterans Therapy Act
- 116-hr-3589: Greg LeMond Congressional Gold Medal Act
- 116-hr-3495: Improve Well-Being for Veterans Act

## Sources
- [116-hr-8606 on Congress.gov](https://www.congress.gov/bill/116th-congress/house-bill/8606)

## Related
- [116-hr-8696: Securing a Strong Retirement Act of 2020](https://policyrisk.com/legislation/116-hr-8696)
- [116-hr-7659: Ensuring Parity in MA for Audio-Only Telehealth Act of 2020](https://policyrisk.com/legislation/116-hr-7659)
- [116-hr-5534: Comprehensive Immunosuppressive Drug Coverage for Kidney Transplant Patients Ac…](https://policyrisk.com/legislation/116-hr-5534)
- [116-hr-4305: PAWS for Veterans Therapy Act](https://policyrisk.com/legislation/116-hr-4305)
- [116-hr-3589: Greg LeMond Congressional Gold Medal Act](https://policyrisk.com/legislation/116-hr-3589)
- [116-hr-3495: Improve Well-Being for Veterans Act](https://policyrisk.com/legislation/116-hr-3495)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/116-hr-8606 (as of 2025-11-18).