In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS MAY BE USED
WITHOUT PENALTY TO PURCHASE FIRST HOMES.

(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to exceptions to 10-percent additional
tax on early distributions from qualified retirement plans) is amended
by adding at the end thereof the following new subparagraph:
''(D) Distributions from certain plans for first
home purchases.--Distributions to an individual from an
individual retirement plan which are qualified first-
time homebuyer distributions (as defined in paragraph
(6)).''
(b) Qualified First-time Homebuyer Distributions.--Section 72(t) of
such Code is amended by adding at the end thereof the following new
paragraph:
''(6) Qualified first-time homebuyer distributions.--For
purposes of paragraph (2)(D)--
''(A) In general.--The term 'qualified first-time
homebuyer distribution' means any payment or
distribution received by an individual to the extent
such payment or distribution is used by the individual
before the close of the 60th day after the day on which
such payment or distribution is received to pay
qualified acquisition costs with respect to a principal
residence of a first-time homebuyer who is such
individual or the spouse, child, or grandchild of such
individual.
''(B) Qualified acquisition costs.--For purposes of
this paragraph, the term 'qualified acquisition costs'
means the costs of acquiring, constructing, or
reconstructing a residence. Such term includes any
usual or reasonable settlement, financing, or other
closing costs.
''(C) First-time homebuyer; other definitions.--For
purposes of this paragraph--
''(i) First-time homebuyer.--The term
'first-time homebuyer' means any individual
if--
''(I) such individual (and if
married, such individual's spouse) had
no present ownership interest in a
principal residence during the 3-year
period ending on the date of
acquisition of the principal residence
to which this paragraph applies, and
''(II) subsection (a)(6), (h), or
(k) of section 1034 did not suspend the
running of any period of time specified
in section 1034 with respect to such
individual on the day before the date
the distribution is applied pursuant to
subparagraph (A)(ii).
''(ii) Principal residence.--The term
'principal residence' has the same meaning as
when used in section 1034.
''(iii) Date of acquisition.--The term
'date of acquisition' means the date--
''(I) on which a binding contract
to acquire the principal residence to
which subparagraph (A) applies is
entered into, or
''(II) on which construction or
reconstruction of such a principal
residence is commenced.
''(D) Special rule where delay in acquisition.--If
any distribution from any individual retirement plan
fails to meet the requirements of subparagraph (A)
solely by reason of a delay or cancellation of the
purchase or construction of the residence, the amount
of the distribution may be contributed to an individual
retirement plan as provided in section 408(d)(3)(A)(i)
(determined by substituting '120 days' for '60 days' in
such section), except that--
''(i) section 408(d)(3)(B) shall not be
applied to such contribution, and
''(ii) such amount shall not be taken into
account in determining whether section
408(d)(3)(A)(i) applies to any other amount.''
(c) Effective Date.--The amendments made by this section shall
apply to payments and distributions after the date of the enactment of
this Act.
A:
Amends the Internal Revenue Code to allow penalty-free withdrawals from individual retirement plans if used within 60 days for the acquisition of a principal residence for a first-time homebuyer.