College Savings: Using 529 Plans for First Home Purchases
A senate committee must act next: committee consideration.
The bill has support from both parties and addresses the popular issue of housing costs, but it faces a long path through the tax committee.
Govbase has not yet run an impact analysis on this legislation.
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
U.S. Sen. Jon Husted and Sen. Michael Bennet introduced the First-Time Homebuyer Empowerment Act to allow individuals to transfer up to $35,000 in leftover 529 plan savings tax-free for a first home purchase. The bill requires accounts to be open for 15 years to prevent short-term tax dodging.
The First-Time Homebuyer Empowerment Act would allow eligible buyers to transfer up to $35,000 in unused 529 funds tax-free toward a down payment. Supporters say the measure provides a tool for families to achieve homeownership using existing resources without creating new taxpayer-funded programs.
Republican Sen. Jon Husted and Democratic Sen. Michael Bennet introduced legislation allowing first-time buyers to tap into 529 plans. The bill limits distributions to $35,000, a cap shared with Roth IRA rollovers, and requires that funds have been in the account for at least five years.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
First-Time Home Buyer Empowerment Act
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