Lets people use college savings for a first home without extra taxes.
Currently, money taken from college savings plans (529 plans) for non-education costs usually faces federal income tax and an extra 10% penalty. This bill would let people use their 529 plan funds to buy a first home for themselves or certain family members. They would not have to pay federal income tax on that money.
Today, if you take money out of a 529 college savings plan for anything other than approved education expenses, you generally pay federal income tax on the earnings and an extra 10% penalty. If this bill becomes law, you would be able to use those 529 funds to pay for qualified costs when buying a first home for yourself or certain family members, without paying those federal income taxes or penalties.
HR 7402 · 119th Congress · AI Summary by gemini-2.5-flash · 9/10
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Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.