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119-hr-10944119th CongressWALLET

Homeownership Opportunity Act

Sponsored By: Representative Steube, W. Gregory [R-FL-17]

Introduced

Summary

This bill would let people use money from certain retirement accounts tax-free for a home down payment and closing costs, creating a targeted tax exclusion for those distributions. It frames repayment rules and caps and applies to defined contribution, 403(a), and 457(b) plans.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Tax-free retirement withdrawals for homebuyers

This bill would let you exclude certain retirement-plan withdrawals from taxable income when you use the money for a down payment or closing costs on your main home. The annual exclusion would equal the greater of $40,000 or 40% of your vested account balance on the distribution date, reduced by prior qualifying and related distributions, and cannot exceed the amount used for the purchase. It would apply to defined contribution plans and similar 403(a), 403(b), and eligible 457(b) plans for tax years starting after Dec 31, 2025. The exclusion would not apply to distributions in tax years starting after Dec 31, 2035.

Repay retirement withdrawals after home purchase

If enacted, the bill would let you repay up to the amount you withdrew for a qualifying home purchase within 3 years after the distribution. Repayments must go to eligible retirement plans that accept rollovers and cannot go to defined benefit plans. You could repay to an IRA only if you have separated from the employer that ran the distributing plan. For non-IRA plans, repayments could not exceed what you received from that plan and would be treated as rollovers, including trustee-to-trustee transfers within 60 days. These repayment rules would apply for tax years starting after Dec 31, 2025, and the related home-purchase distribution rules would not apply for tax years starting after Dec 31, 2035.

Sponsors & CoSponsors

Sponsor

Steube, W. Gregory [R-FL-17]

FL • R

Cosponsors

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 10/29/2026

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 10/29/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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