Bill > HR7402

This bill, titled the "Unlocking Homeownership Act," amends Section 529(c)(3) of the Internal Revenue Code of 1986 to allow individuals to withdraw funds from a qualified tuition program, commonly known as a 529 plan, for the purchase of a first home without incurring penalties. A qualified first-time homebuyer distribution is defined as funds used within 120 days of withdrawal to cover qualified acquisition costs, which are defined similarly to those for retirement account withdrawals for home purchases, for a principal residence. This applies to the beneficiary, their spouse, or certain close relatives, provided they haven't owned a principal residence in the preceding two years. The bill also includes provisions for situations where a home purchase is delayed or canceled due to a qualified disaster, allowing funds to be transferred to another 529 plan or an ABLE account (Achieving a Better Life Experience account, designed for individuals with disabilities) under specific conditions, and permits recontributions of such distributions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/7402/all-info