First Time Homeowner Savings Plan Act

First Time Homeowner Savings Plan Act

This bill increases from $10,000 to $25,000 the aggregate amount a taxpayer may withdraw, without penalty, from a tax-exempt retirement plan as a first-time homebuyer distribution.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5078 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 5078

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 can be withdrawn without penalty from individual retirement plans as 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 23, 2021

  Mr. Sean Patrick Maloney of New York 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 can be withdrawn without penalty from individual retirement plans as 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 2022, 
                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 2021' 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, 2021, in taxable years ending 
after such date.
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