H.R.7393

Allows tax-free withdrawals from 529 plans for first-time homebuyers' housing expenses.

The Save for Success Act amends the Internal Revenue Code to permit tax-free distributions from qualified tuition programs, commonly known as 529 plans, for qualified housing expenses. This includes expenses for the purchase of a principal residence, such as closing costs and mortgage payments, provided the beneficiary is a first-time homebuyer. A first-time homebuyer is defined as someone who, along with their spouse if married, has not owned a principal residence in the three years prior to the purchase. The amendment applies to distributions made after December 31, 2026.