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US HB7402
Bill
Status
Introduced
2/5/2026
Primary Sponsor
Tim Moore
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AI Summary
- Amends Internal Revenue Code Section 529 to allow penalty-free distributions from 529 qualified tuition programs (college savings plans) for first-time home purchases
- Distributions must be used within 120 days to pay qualified acquisition costs for a principal residence for the beneficiary, their spouse, or children/grandchildren/ancestors
- First-time homebuyer defined as someone with no ownership interest in a principal residence during the 2-year period before acquisition
- If home purchase is delayed or cancelled, funds can be transferred to another 529 plan or ABLE account within 120 days without penalty
- Includes special recontribution provisions for beneficiaries in federally-declared disaster areas, allowing funds to be returned to 529 plans if home purchase was prevented by the disaster
Legislative Description
Unlocking Homeownership Act
Last Action
Referred to the House Committee on Ways and Means.
2/5/2026
Committee Referrals
Ways And Means2/5/2026
Full Bill Text
No bill text available