Home Savings Act excludes retirement plan distributions from gross income if used for a principal residence down payment or closing costs.
The Home Savings Act amends the Internal Revenue Code to exclude from gross income certain retirement plan distributions used for a down payment or closing costs for a principal residence. This applies to distributions from defined contribution plans, certain annuity plans, and individual retirement plans. The exclusion applies to distributions made by an employee or individual, or their eligible relatives, and is effective for distributions made in taxable years beginning after December 31, 2025, and before January 1, 2031.
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