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119-hr-7185119th CongressWALLET

Home Savings Act

Sponsored By: Representative McGuire, John J. [R-VA-5]

Introduced

Summary

A temporary tax break letting people tap retirement savings for a home down payment or closing costs. This bill would create an income tax exclusion for distributions from certain retirement plans when the money is used to buy a principal residence.

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  • Families and homebuyers: Would let an individual use retirement-plan withdrawals tax-free for a down payment or closing costs on their principal residence or that of an eligible relative. Eligible relatives include a spouse, a child, a grandchild, or an ancestor.
  • Retirement savers and accounts: The exclusion would apply across defined contribution plans, 403(b) annuities, individual retirement accounts, and eligible 457(b) plans. The bill sets rules to treat plan amounts consistently with existing distribution rules.
  • Timing and tax details: The exclusion would start for withdrawals in taxable years beginning after December 31, 2025 and would not apply to distributions in taxable years beginning after December 31, 2030. Transfers of these amounts to an eligible relative for a down payment or closing costs would not count as taxable gifts under current gift tax rules.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Lower taxes on home down-payment withdrawals

You would be able to exclude from your taxable income distributions from IRAs, defined contribution plans, 403(a)/403(b) plans, and eligible 457(b) plans when the money is used for a down payment or closing costs on a main home for you or an eligible relative. Eligible relatives are your spouse or any child, grandchild, or ancestor of you or your spouse. Transfers you make to an eligible relative for their down payment or closing costs would not be treated as a gift for gift tax purposes. The exclusion would apply to distributions in tax years beginning after December 31, 2025 and would not apply to distributions made in tax years beginning after December 31, 2030. Special aggregation rules for IRAs and defined contribution plans would affect how much of a distribution can be excluded.

Sponsors & CoSponsors

Sponsor

McGuire, John J. [R-VA-5]

VA • R

Cosponsors

  • Rep. Weber, Randy K. Sr. [R-TX-14]

    TX • R

    Sponsored 1/30/2026

  • Rep. Collins, Mike [R-GA-10]

    GA • R

    Sponsored 2/11/2026

  • Rep. Harrigan, Pat [R-NC-10]

    NC • R

    Sponsored 2/20/2026

  • Rep. Crank, Jeff [R-CO-5]

    CO • R

    Sponsored 2/23/2026

  • Rep. Van Drew, Jefferson [R-NJ-2]

    NJ • R

    Sponsored 4/9/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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