H.R. 2748

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to increase the amount that can be withdrawn without penalty from individual retirement plans as first-time homebuyer distributions.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 · April 8, 2025 · Sponsor: Ms. Stevens · Committee: Committee on Ways and Means

Table of contents

• H.R. 2748
  • SEC. 1. Short title
  • SEC. 2. Increase in limitation on penalty-free first-time homebuyer distributions

SEC. 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
  • of the Internal Revenue Code of 1986 is amended by striking striking0,000and inserting 5,000. Section 72(t)(8)(B)(i)
• (b) Inflation adjustment
  • (G) Inflation adjustment
    • In the case of any taxable year beginning in a calendar year after 2026, 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, determined by substituting for in subparagraph (A)(ii) thereof. calendar year 2025 calendar year 2016
    • Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.
  • Section 72(t)(8) of such Code is amended by adding at the end the following new subparagraph:
• (c) Effective date
  • The amendments made by this section shall apply to distributions made December 31, 2025, in taxable years ending after such date.