118 HR 9994 IH: First Time Homeowner Savings Plan Act U.S. House of Representatives 2024-10-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS2d SessionH. R. 9994IN THE HOUSE OF REPRESENTATIVESOctober 15, 2024Ms. Stevens introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to increase the amount that can be withdrawn without penalty from individual retirement plans as first-time homebuyer distributions.

1.

Short title

This Act may be cited as the First Time Homeowner Savings Plan Act.

2.

Increase in limitation on penalty-free first-time homebuyer distributions

(a)

In general

Section 72(t)(8)(B)(i) of the Internal Revenue Code of 1986 is amended by striking $10,000 and inserting $25,000.(b)

Inflation adjustment

Section 72(t)(8) of such Code is amended by adding at the end the following new subparagraph:(G)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2025, the $25,000 amount in subparagraph (B)(i) shall be increased by an amount equal to—(i)such dollar amount, multiplied by(ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof.Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100..(c)

Effective date

The amendments made by this section shall apply to distributions made December 31, 2024, in taxable years ending after such date.