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Retirement Savings for First Home: Penalty-Free Withdrawal Limit Increased to $25,000.

This act significantly helps citizens save for their first home by increasing the amount they can withdraw from individual retirement plans (IRAs) without incurring an early withdrawal penalty. The maximum penalty-free withdrawal for first-time homebuyers is raised substantially. Furthermore, this new limit will be adjusted annually for inflation, ensuring its value is maintained over time.
Key points
The maximum amount that can be withdrawn penalty-free from retirement accounts (IRAs) for a first-time home purchase increases from $10,000 to $25,000.
The $25,000 limit will be automatically adjusted for inflation starting in 2026 to preserve its real purchasing power.
These changes apply to distributions made after December 31, 2024.
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Additional Information
Print number: 118_HR_9994
Sponsor: Rep. Stevens, Haley M. [D-MI-11]
Process start date: 2024-10-15
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

First Time Homeowner Savings Plan Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9994.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-10-15.

What are the main provisions?

Key points include:

  • The maximum amount that can be withdrawn penalty-free from retirement accounts (IRAs) for a first-time home purchase increases from $10,000 to $25,000.
  • The $25,000 limit will be automatically adjusted for inflation starting in 2026 to preserve its real purchasing power.
  • These changes apply to distributions made after December 31, 2024.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Stevens, Haley M. [D-MI-11].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Real Estate