Lets people use retirement savings for a home down payment without paying income tax
This bill would let people take money out of their retirement accounts like 401(k)s and IRAs to help pay for a down payment or closing costs on a main home. They wouldn't have to pay income tax on that money. This also applies if they help certain family members buy a home, and those transfers wouldn't be taxed as gifts, but only for a limited time.
Today, if you take money out of most retirement accounts for a home down payment or closing costs, that money is typically added to your taxable income. If you give that money to a family member, it might also be subject to gift tax. With this bill, from January 1, 2026, through December 31, 2030, money withdrawn from certain retirement plans for a down payment or closing costs on a main home for yourself or an eligible relative would not be taxed as income. Also, transferring this money to an eligible relative for their home purchase would not be considered a taxable gift.
HR 7185 · 119th Congress · January 21, 2026 · AI Summary by gemini-2.5-flash · 9/10
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7 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.