Bill > S2867

This bill, called the "Uplifting First-Time Homebuyers Act of 2025", amends the Internal Revenue Code to increase the limitation on qualified first-time homebuyer distributions from retirement accounts. Specifically, the bill increases the amount that first-time homebuyers can withdraw from their retirement accounts (such as 401(k)s or IRAs) without incurring the typical 10% early withdrawal penalty from $10,000 to $50,000. This change would apply to taxable years beginning after December 31, 2024, meaning the higher distribution limit would take effect for the 2025 tax year. The purpose of such a provision is to help first-time homebuyers access funds for a down payment or home purchase expenses without facing significant tax penalties, potentially making homeownership more accessible by allowing individuals to use their retirement savings more flexibly.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2867/all-info