First-Time Home Buyer Empowerment Act

This bill would change federal tax law so that money taken out of a 529 education savings account can be used tax-free to buy a first home, if the account has been open for at least 15 years. The money must be used within 60 days to buy a main home for the account's beneficiary, who must be a first-time homebuyer, and only contributions made more than 5 years earlier (plus their earnings) qualify. The total allowed is $35,000 per beneficiary, shared with the existing limit on rolling 529 money into a Roth IRA. If the home is sold or stops being the beneficiary's main home within 5 years, some of the tax benefit must be paid back with interest, reduced by 20 percent for each full year the home was kept.

Full text and official record on Congress.gov

Sponsors

• Tracey Mann Republican sponsor
• 10 cosponsors