I
119THCONGRESS
1
STSESSION H. R. 2748
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can be withdrawn without penalty from individual retirement plans as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
APRIL8, 2025
Ms. S
TEVENSintroduced 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the amount that can be withdrawn without penalty from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 dis-
tributions.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘First Time Home-4
owner Savings Plan Act’’. 5
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SEC. 2. INCREASE IN LIMITATION ON PENALTY-FREE 1
FIRST-TIME HOMEBUYER DISTRIBUTIONS. 2
(a) I
NGENERAL.—Section 72(t)(8)(B)(i) of the In-3
ternal Revenue Code of 1986 is amended by striking 4
‘‘$10,000’’ and inserting ‘‘$25,000’’. 5
(b) I
NFLATIONADJUSTMENT.—Section 72(t)(8) of 6
such Code is amended by adding at the end the following 7
new subparagraph: 8
‘‘(G) I
NFLATION ADJUSTMENT .—In the 9
case of any taxable year beginning in a calendar 10
year after 2026, the $25,000 amount in sub-11
paragraph (B)(i) shall be increased by an 12
amount equal to— 13
‘‘(i) such dollar amount, multiplied by 14
‘‘(ii) the cost-of-living adjustment de-15
termined under section 1(f)(3) for the cal-16
endar year in which the taxable year be-17
gins, determined by substituting ‘calendar 18
year 2025’ for ‘calendar year 2016’ in sub-19
paragraph (A)(ii) thereof. 20
Any increase determined under the preceding 21
sentence shall be rounded to the nearest mul-22
tiple of $100.’’. 23
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(c) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to distributions made December 2
31, 2025, in taxable years ending after such date. 3
Æ
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