Establishes tax-exempt American dream accounts for U.S. citizens to save for first-time home purchases.
The American Dream Accounts Act of 2026 amends the Internal Revenue Code to create tax-exempt American dream accounts for U.S. citizens. These accounts allow individuals to save for first-time home purchases without immediate tax implications. Contributions are limited to $7,500 per year, with a lifetime limit of $250,000. Distributions for qualified first-time homebuyer expenses are exempt from gross income, provided the home is not sold within three years. Rollover contributions and transfers to Roth IRAs are permitted under specific conditions.
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