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Congress·In Committee·25 days ago

House Bill Would Let First-Time Homebuyers Tap 529 College Savings Tax-Free

Also known as: Save for Success Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
TaxesHousingEducation

Milestones

2 milestones2 actions
Feb 5, 2026House

Referred to the House Committee on Ways and Means.

Feb 5, 2026

Introduced in House

Related News

3 articles
Florida Politics·24 days ago

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.

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Floridian Press·24 days ago

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.

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WJHG-TV·25 days ago

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.

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Source Information

Document Type

Congressional Bill

Official Title

Save for Success Act

Bill NumberHR 7393
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.