Creates new tax-free savings accounts to help Americans buy their first home.
This bill would create "American Dream Accounts," a new type of tax-exempt savings account for U.S. citizens. People could save money with tax advantages and withdraw it tax-free to buy their first home, potentially making homeownership more accessible. Money can also be moved between these accounts or into a Roth IRA, but there are rules, including a $100,000 lifetime limit for transfers to family members or Roth IRAs from one account. It would take effect for taxable years starting after December 31, 2026.
Today, there isn't a specific tax-exempt savings account designed for first-time homebuyers. This bill would create "American Dream Accounts" where U.S. citizens could save up to $7,500 each year (or $10,000 for those 35 and older) and withdraw up to $500,000 tax-free to buy their first home. This would provide a new, tax-advantaged way to save for homeownership.
HR 9895 · 119th Congress · July 23, 2026 · AI Summary by gemini-2.5-flash · 8/10
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