Uplifting First-Time Homebuyers Act of 2025

Key Points

• This bill would allow people buying their first home to take more money out of their retirement accounts without paying a penalty. Currently, the law only lets you take out $10,000 for this purpose, but this change would raise that limit to $50,000.
• The plan aims to help people who are struggling to save enough for a down payment or closing costs. Since home prices have risen significantly, the current $10,000 limit often isn't enough to make a real dent in the cost of a new home.
• This change would apply to tax years starting after December 31, 2024. It is designed for first-time buyers, which generally includes anyone who has not owned a home in the last two years.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.