A Republican bill with 1 Democratic cosponsor · See all 2 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is known as the Homeownership Opportunity Act. It allows workers to take money out of certain retirement plans without paying taxes on it, provided the money is used for a down payment or closing costs on their primary home. The total amount a person can take out for this purpose is limited by specific rules outlined in the text. People who take these distributions are given a 3-year period to repay the money back into an eligible retirement plan. The rules also apply to certain annuity plans and deferred compensation plans. These new provisions are set to end for any taxable years starting after December 31, 2035.
Yes· 3 of 5
- Scored +5
Does this make housing cost less?
By excluding certain retirement plan distributions used for a down payment or closing costs from gross income, the bill directly assists individuals in securing homeownership.
- Scored +4
Would people in their twenties and thirties be better off under this?
Young adults attempting to buy their first home benefit from the ability to access retirement funds without tax penalties for down payments.
- Scored +4
Would middle-income households be better off under this?
Middle-income families looking to buy a home receive tax relief on retirement distributions used for down payments.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Exclusion from Gross Income: Under Section 2(a), specifically adding Section 402(m)(1), Section 403(d)(1), and Section 457(e)(19) to the Internal Revenue Code, individuals can exclude certain retirement plan distributions from their gross income if the funds are used for a down payment or closing costs for a principal residence. This is a positive outcome because it lowers the tax burden for people trying to buy a home.
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Repayment Flexibility: Under Section 2(a), adding Section 402(m)(3), individuals who receive a distribution are allowed to make one or more repayment contributions within a 3-year period beginning on the day after the distribution was received. This is beneficial because it gives folks a chance to put their retirement savings back together after buying a home.
Potential Negative Impacts for People
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Distribution Limits: Under Section 2(a), adding Section 402(m)(2), Section 403(d)(2), and Section 457(e)(19)(B), the amount an individual can withdraw is restricted to the greater of $40,000 or 40 percent of their vested account balance, minus any prior distributions. This could be seen as a burden or negative limitation for individuals who need a larger sum from their retirement accounts to secure housing.
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Program Expiration: Under Section 2(a), adding Section 402(m)(6), Section 403(d)(3), and Section 457(e)(19)(C), the provisions allowing these tax-free distributions terminate and will not apply to any distributions in taxable years beginning after December 31, 2035. This means the benefit goes away after a set time, cutting off future homebuyers from using this option.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — Middle-income families looking to buy a home receive tax relief on retirement distributions used for down payments. Would people in their twenties and thirties be better off under this? — Young adults attempting to buy their first home benefit from the ability to access retirement funds without tax penalties for down payments. Would people in middle age be better off under this? — Middle-aged workers purchasing a principal residence can utilize tax-free retirement plan distributions for initial home costs.
- Social Issues And Justice
- Does this make housing cost less? — By excluding certain retirement plan distributions used for a down payment or closing costs from gross income, the bill directly assists individuals in securing homeownership.
- Economy And Finance
- Is this likely to grow the economy? — The bill incentivizes home purchases by allowing tax-free retirement plan withdrawals for down payments and closing costs, which can stimulate the housing market.
- 10/29/2026
- Referred to the House Committee on Ways and Means.
- 2 Cosponsors added.
- Introduced in House
Mike CareyRepublican · Ohio
Jimmy PanettaDemocrat · California