A bill to amend the Internal Revenue Code of 1954 to permit an employer corporation to establish a plan under which its employees may purchase and hold stock in such corporation.

[AI summary unavailable — showing source text] Permits an employer corporation to establish a plan under which its employees may purchase and hold stock in such corporation for purposes of constituting a qualified trust pursuant to the Internal Revenue Code. Provides that under such plan: (1) each employee of the employer corporation may participate in the plan; (2) no participant may contribute more than $2,000 to the plan during any one calendar year; (3) no individual who is not an employee of the employer corporation may make any contribution to the plan; and (4) the trust will make no distribution to a participant in the plan before he has reached retirement age, or is disabled. States that the trustee must be a bank which is incorporated and doing business under the laws of the United States or of the State in which the headquarters of the employer corporation are maintained. Provides for the tax free transfer of the participant's stock in one corporation when he terminates his employment and becomes the employee of a second corporation which has a plan which meets the requirements of this Act. Provides for the continuation of the plan where a successor corporation results from a corporation merger, consolidation or the a…