First Time Homebuyer Pandemic Savings Act

First Time Homebuyer Pandemic Savings Act

This bill extends for one year the exemption from the penalty for early distributions from tax-preferred retirement plans for distributions related to COVID-19 (i.e., coronavirus disease 2019). It also excludes from gross income COVID-19-related distributions which are first-time homebuyer distributions up to $25,000 in a taxable year.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7645 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7645

To extend the time period for making coronavirus-related distributions 
from retirement plans and to provide an exclusion from gross income of 
   coronavirus-related distributions which are first-time homebuyer 
                             distributions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2020

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

_______________________________________________________________________

                                 A BILL


 
To extend the time period for making coronavirus-related distributions 
from retirement plans and to provide an exclusion from gross income of 
   coronavirus-related distributions which are 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 Homebuyer Pandemic 
Savings Act''.

SEC. 2. EXTENSION OF PERIOD FOR MAKING CORONAVIRUS-RELATED 
              DISTRIBUTIONS FROM RETIREMENT PLANS.

    (a) In General.--Section 2202(a)(4)(A)(i) of the CARES Act is 
amended by striking ``December 31, 2020'' and inserting ``December 31, 
2021''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after December 31, 2020.

SEC. 3. EXCLUSION FROM GROSS INCOME OF CORONAVIRUS-RELATED 
              DISTRIBUTIONS WHICH ARE FIRST-TIME HOMEBUYER 
              DISTRIBUTIONS.

    (a) In General.--Section 2202(a) of the CARES Act is amended by 
adding at the end the following new paragraph:
            ``(7) Exclusion from gross income of coronavirus-related 
        distributions which are first-time homebuyer distributions.--
                    ``(A) In general.--Gross income shall not include 
                any coronavirus-related distribution which is a 
                qualified first-time homebuyer distribution (as defined 
                in section 72(t)(8)(A) of the Internal Revenue Code of 
                1986).
                    ``(B) Dollar limitation.--The aggregate amount 
                taken into account as qualified first-time homebuyer 
                distributions by any individual under subparagraph (A) 
                for any taxable year shall not exceed the excess (if 
                any) of--
                            ``(i) $25,000, over
                            ``(ii) the aggregate amount so taken into 
                        account in all prior taxable years.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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