The NEST Act establishes first-time homebuyer savings accounts to help individuals save for home ownership expenses.
The Next-Generation Equity Savings Tool Act, or NEST Act, amends the Internal Revenue Code to create first-time homebuyer savings accounts. These accounts allow individuals to save for qualified home ownership expenses, such as down payments and closing costs, tax-free. Contributions to these accounts are not deductible, and distributions used for qualified home ownership expenses are also tax-free. The accounts are subject to certain rules, including a limit on contributions based on the median home price in the state where the account is established.
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