Save for Success Act
House Bill Would Let First-Time Homebuyers Tap 529 College Savings Tax-Free
Legislative Progress
Key Points
- This bill would change the rules for 529 plans, which are special tax-advantaged accounts usually used for college. It would allow people to take money out of these accounts to buy their first home without paying the usual taxes or penalties.
- To qualify, a person must be a first-time homebuyer, meaning they (and their spouse, if married) haven't owned a home in the last three years. The money can be used for the home purchase, closing costs, and mortgage payments.
- This policy aims to help people who have extra money left in their college savings accounts or who want to use those savings to help afford their first house. It treats a home purchase as a major life success similar to getting an education.
- If this bill becomes law, the new rules would apply to any money taken out of these accounts after December 31, 2026.
Impact Analysis
Personal Impact
Life & Work
Students and recent graduates with unused 529 plan funds would gain a new option for that money — putting it toward buying a first home. This is especially helpful for students who earned scholarships, attended lower-cost schools, or didn't use all their savings for education. It gives them more flexibility with funds their families set aside for them.
Programs
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Gus Bilirakis, Jimmy Patronis push to allow first-time homebuyers to tap 529 college funds
Reps. Bilirakis and Patronis introduced the Save for Success Act to help young families afford homes by repurposing college savings. The legislation treats homeownership as a community-strengthening milestone similar to education, allowing tax-free withdrawals for principal residence purchases.
Jimmy Patronis, Gus Bilirakis Foster Young Homeownership
The Save for Success Act aims to amend the Internal Revenue Code to treat 529 distributions as qualified housing expenses. Rep. Patronis stated the bill provides 'greater flexibility' for families to use existing savings to combat rising housing costs and achieve the American Dream.
Patronis, Bilirakis introduce bill to unlock tuition savings for first-time homebuyers
Local Florida representatives have introduced federal legislation called the Save for Success Act. The bill would permit 529 plan holders to use their savings for down payments and mortgage costs, targeting individuals who have not owned a home in the previous three years.
Source Information
Document Type
Congressional Bill
Official Title
Save for Success Act
Data Sources
Sponsor
Cosponsors
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