Bill > HR2748

This bill amends the Internal Revenue Code to increase the amount that can be withdrawn from individual retirement plans (IRAs) without penalty for first-time homebuyers. Specifically, the legislation raises the penalty-free withdrawal limit from $10,000 to $25,000 for individuals purchasing their first home. The bill also includes an inflation adjustment provision that will automatically increase this $25,000 amount annually starting in 2027, based on the cost of living. The adjustment will be calculated by comparing the cost of living to the 2025 calendar year and rounded to the nearest $100. These changes will apply to distributions made on or after December 31, 2025. The purpose of this bill is to provide more financial flexibility for first-time homebuyers by allowing them to access a larger portion of their retirement savings without incurring early withdrawal penalties, potentially making home ownership more accessible.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2748/all-info