House Bill Would Let First-Time Homebuyers Tap 529 College Savings Tax-Free
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.
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.
No votes have been recorded for this legislation yet.
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.
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.
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.
Document Type
Congressional Bill
Official Title
Save for Success Act
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