Bill > HR7468

This bill, titled the "First-Time Home Buyer Empowerment Act," amends Section 529 of the Internal Revenue Code of 1986 to allow individuals to withdraw funds from a qualified tuition program, often referred to as a 529 plan, for the purchase of a first home without incurring penalties, provided certain conditions are met. Specifically, the 529 plan must have been maintained for at least 15 years, and the withdrawal must not exceed the amount contributed before the last five years of the plan's existence, with the funds being used within 60 days to buy a primary residence for the designated beneficiary, who must be a first-time homebuyer. There is an aggregate limit of $35,000 for such withdrawals, and if the home is sold or ceases to be the principal residence within five years of purchase, the tax benefit may be recaptured, though this recapture amount is reduced by 20% for each full year the home was owned. The bill also includes provisions for delays in home purchases and coordinates these changes with existing rules for rollovers to Roth IRAs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/7468/all-info