First-Time Home Buyer Empowerment Act

This bill would change federal tax law so that money in a 529 college savings account could be used tax-free toward buying a first home. The account must have existed for at least 15 years, and only money contributed more than 5 years earlier (plus its earnings) would qualify. 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. There would be a $35,000 lifetime limit, shared with the existing limit on rollovers from 529 accounts to Roth IRAs. If the home is sold or stops being the main home within 5 years, part of the tax benefit would have to be paid back with interest, reduced by 20 percent for each full year the home was owned.

Full text and official record on Congress.gov

Sponsors

• Jon Husted Republican sponsor
• 1 cosponsors