US SB2867

Increases the penalty-free IRA withdrawal limit for first-time homebuyers from $10,000 to $50,000

Amends Section 72(t)(8)(B)(i) of the Internal Revenue Code of 1986, which governs qualified first-time homebuyer distributions

Applies to taxable years beginning after December 31, 2024

Introduced September 18, 2025 by Senator Gallego (D-AZ) with Senator Young (R-IN) as cosponsor

Referred to the Senate Committee on Finance