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S. 2867119th CongressIn committeeLatest action Sep 18, 2025Decoded by AI · checked against the record
Official title: Uplifting First-Time Homebuyers Act of 2025
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
S 2867 would raise the penalty-free retirement withdrawal limit for first-time homebuyers from $10,000 to $50,000 starting in 2025.
45-second read · 4 questions answered below
S 2867 would raise the penalty-free early withdrawal limit from qualifying retirement accounts, such as a traditional IRA, from $10,000 to $50,000 for first-time homebuyers. The current $10,000 limit has been in place since 1997 and has never been adjusted for inflation. The change would take effect beginning with the 2025 tax year.
This bill would affect people who have never owned a home and hold money in a qualifying retirement account such as a traditional IRA. It does not apply to employer-sponsored plans like a 401(k) under this specific rule.
Withdrawers would still owe regular income taxes on any amount taken out, since the bill removes only the 10% early withdrawal penalty, not the tax itself. First-time homebuyers using retirement savings toward costs such as a down payment would be the primary group whose financial decisions are affected.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Finance.