First Time Homeowner Savings Plan Act

HR 9994, the First Time Homeowner Savings Plan Act, increases the penalty-free withdrawal limit for first-time homebuyers from retirement accounts from $10,000 to $25,000 under IRS rules. This change directly affects first-time homebuyers who wish to access retirement savings without early withdrawal penalties. The bill also establishes an automatic inflation adjustment for the $25,000 limit starting in 2025, tying increases to the cost-of-living adjustment. The amendment applies to distributions made on or after December 31, 2024.