S. 1839 — Generating Retirement Ownership through Long-Term Holding

This section establishes nonrecognition of gain for individuals (excluding dependents, estates, or trusts) on capital gain dividends from regulated investment companies (RICs, i.e., mutual funds and certain exchange-traded funds) that are automatically reinvested in additional shares under a dividend reinvestment plan. Deferred gain is recognized pro rata upon a subsequent sale or redemption of RIC shares or upon the individual's death (with reinvested shares treated as held for more than one year from acquisition); conforming amendments are made to IRC §852(b)(3)(B) and the table of sections. The provision applies to taxable years ending after enactment.