First Time Homeowner Savings Plan Act

This bill raises how much a first-time homebuyer can take out of an IRA without paying the 10% early withdrawal penalty. The limit would go up to $25,000, and starting after 2026, that amount would adjust each year for inflation so it keeps up with rising costs.

It would take effect for withdrawals made after December 31, 2025. This change is meant to help people save for down payments and closing costs when buying their first home.

• Who is affected: People using money from an IRA to buy their first home.
• What changes: The penalty-free withdrawal limit rises to $25,000, with annual inflation adjustments after 2026.
• When: Applies to withdrawals made after December 31, 2025.