First Time Homeowner Savings Plan Act

First Time Homeowner Savings Plan Act

This bill amends the Internal Revenue Code to increase from $10,000 to $25,000 the maximum amount that may be withdrawn, without penalty, from a qualified retirement plan for purposes of assisting a first-time homebuyer in purchasing a principal residence. This increased distribution amount shall be adjusted annually for inflation for taxable years beginning after 2018.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2808 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2808

To amend the Internal Revenue Code of 1986 to increase the amount that 
 can be withdrawn without penalty from individual retirement plans as 
                  first-time homebuyer distributions.


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                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 2017

  Mr. Sean Patrick Maloney of New York (for himself and Mr. Coffman) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to increase the amount that 
 can be withdrawn without penalty from individual retirement plans as 
                  first-time homebuyer distributions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``First Time Homeowner Savings Plan 
Act''.

SEC. 2. INCREASE IN LIMITATION ON PENALTY-FREE FIRST-TIME HOMEBUYER 
              DISTRIBUTIONS.

    (a) In General.--Section 72(t)(8)(B)(i) of the Internal Revenue 
Code of 1986 is amended by striking ``$10,000'' and inserting 
``$25,000''.
    (b) Inflation Adjustment.--Section 72(t)(8) of such Code is amended 
by adding at the end the following new subparagraph:
                    ``(F) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2018, 
                the $25,000 amount in subparagraph (B)(i) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `calendar year 2017' for 
                        `calendar year 1992'.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made December 31, 2017, in taxable years ending 
after such date.
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