First Time Homeowner Savings Plan Act

Bill: 117-hr-5078
Sponsor: full_name: Rep. Maloney, Sean Patrick [D-NY-18]
Introduced: 2021-08-23
Policy area: Taxation
Latest action: action_date: 2021-08-23
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-08-23
action_desc: Introduced in House
text: <p><strong>First Time Homeowner Savings Plan Act</strong></p> <p>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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 5078 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to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the amount that can be withdrawn without penalty from individual retirement plans as first-time homebuyer distributions.

1. Short title This Act may be cited as the First Time Homeowner Savings Plan Act . 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.