Section 1 Short title
This Act may be cited as the “First Time Homeowner Savings Plan Act”.
First Time Homeowner Savings Plan Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the amount that can be withdrawn without penalty from individual retirement plans as first-time homebuyer distributions.
Sec. 2 Increase in limitation on penalty-free first-time homebuyer distributions
In general— Section 72(t)(8)(B)(i) of the Internal Revenue Code of 1986 is amended by striking “$10,000” and inserting “$25,000”.
Inflation adjustment— Section 72(t)(8) of such Code is amended by adding at the end the following new subparagraph:
“(F) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2015, the $25,000 dollar amount in subparagraph (B)(i) shall be increased by an amount equal to—
“(i) such dollar amount, multiplied by
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2014” for “calendar year 1992”.”
Effective date— The amendments made by this section shall apply to distributions made after the date of the enactment of this Act, in taxable years ending after such date.