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New Bills Propose Using 529 Savings for First-Time Home Purchases

February 5 – February 10, 2026

Proposed legislation H.R. 7402 and H.R. 7393 aim to allow first-time homebuyers to make penalty-free and tax-free withdrawals from 529 college savings plans for home purchases and mortgage payments. This shift would expand the utility of education accounts to support housing affordability.

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