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Tax changes: tax-free retirement withdrawals for home down payments

This law allows tax-free withdrawals from certain retirement plans to pay for a home down payment or closing costs. You can use these funds for your own principal residence or to help eligible family members acquire one.
Key points
No income tax on retirement withdrawals used for down payments or closing costs for a principal residence.
Financial help for a spouse, children, grandchildren, or ancestors is exempt from gift tax.
The rule applies to defined contribution plans, annuity plans, individual retirement plans (IRAs), and 457(b) plans.
These provisions apply to distributions made in taxable years beginning after December 31, 2025, and before January 1, 2031.
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Status: Introduced
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Additional Information
Print number: 119_HR_7185
Sponsor: Rep. McGuire, John J. [R-VA-5]
Process start date: 2026-01-21
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Home Savings Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_7185.

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 2026-01-21.

What are the main provisions?

Key points include:

  • No income tax on retirement withdrawals used for down payments or closing costs for a principal residence.
  • Financial help for a spouse, children, grandchildren, or ancestors is exempt from gift tax.
  • The rule applies to defined contribution plans, annuity plans, individual retirement plans (IRAs), and 457(b) plans.
  • These provisions apply to distributions made in taxable years beginning after December 31, 2025, and before January 1, 2031.
What is the specific legal status?

The current status is Introduced.

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. McGuire, John J. [R-VA-5].

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 2026-02-12.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

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