Unlocking Homeownership Act

This bill changes federal tax law so that money taken out of a 529 education savings plan can be used to buy a first home without being taxed as a non-education withdrawal. The money must be spent within 120 days on buying, building, or rebuilding a main home for a first-time homebuyer, who can be the account beneficiary, their spouse, or certain relatives. A first-time homebuyer is someone who has not owned a main home in the past two years. If the home purchase is delayed or canceled, or if a federally declared disaster stops the purchase, the money can be put back into a 529 plan or ABLE account. The change applies to withdrawals made after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Tim Moore Republican sponsor
• 1 cosponsors