Lets people use 529 college savings for a first home without paying taxes on older earnings
This bill would let people use up to $35,000 from their 529 college savings plans to buy their first home without paying federal income tax or an extra 10% penalty on the earnings from contributions made more than five years before the withdrawal. This changes current rules where using 529 funds for non-education costs usually means paying taxes and penalties. The plan must have been open for at least 15 years to qualify.
Today, if you take money out of a 529 college savings plan for something other than education, you usually pay federal income tax on the earnings and an extra 10% penalty. This bill would let first-time homebuyers use up to $35,000 from a 529 plan that's been open for 15 years to buy a home, without paying those taxes or penalties on the earnings from contributions made more than five years before the withdrawal.
HR 7468 · 119th Congress · AI Summary by gemini-2.5-flash · 8/10
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2 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.