S.4026

American Dream Accounts Act of 2026 introduces tax-exempt accounts for first-time homebuyers.

The American Dream Accounts Act of 2026 amends the Internal Revenue Code to establish American dream accounts, tax-exempt trusts for U.S. citizens aiming to purchase their first home. These accounts allow contributions up to $7,500 annually, with a lifetime limit of $250,000. Distributions for home purchases are exempt from income tax, with specific rules for joint acquisitions and rollovers. The act also imposes taxes on excess contributions and distributions not used for qualified homebuyer expenses. Accounts must be held by approved trustees and cannot be commingled with other assets.