Bill · H.R. 7185· House(119-HR-7185)
Home Savings Act
- Introduced
- 1/21/2026
- Last activity
- 1/21/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- John McGuire
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
The Home Savings Act aims to amend the Internal Revenue Code of 1986 regarding retirement plan distributions. It seeks to exclude certain distributions from gross income if they are used for a down payment or closing costs for a principal residence. This benefit applies to the individual or an eligible relative, such as a spouse, child, grandchild, or ancestor. The provisions cover defined contribution plans, certain annuity plans, individual retirement plans, and 457(b) plans. Additionally, these transfers to eligible relatives would not be treated as gifts for tax purposes. The specified exclusions are set to expire for distributions made in taxable years after December 31, 2030.
Yes· 3 of 6
Would people in their twenties and thirties be better off under this?+5
The bill helps younger generations acquire homes by allowing parents or grandparents to transfer retirement funds for down payments without gift tax consequences.
Would middle-income households be better off under this?+5
Middle-income families can access retirement savings for home purchases without being taxed on the distribution as gross income.
Does this cut taxes for middle-income families?+5
The bill excludes certain retirement plan distributions from gross income when used for home down payments or closing costs.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Exclusion for Home Buyers: Distributions from defined contribution plans used for down payments or closing costs on a principal residence are not included in gross income (Section 2(a)(1)). This could help individuals acquire a home more easily.
-
Support for Families: The bill allows these tax-advantaged distributions to be used for the principal residence of an "eligible relative," which includes a spouse, child, grandchild, or ancestor (Section 2(a)(1)(2)(A)).
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Simplified Family Transfers: When an employee or individual transfers these distributions to an eligible relative for a home purchase, it is not treated as a gift for purposes of section 2503(a) (Section 2(a)(1)(4) and Section 2(a)(3)(D)).
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Broad Coverage of Retirement Plans: The exclusion applies to various types of accounts, including defined contribution plans, certain annuity plans, individual retirement plans, and 457(b) plans (Section 2(a)(1), (2), (3), and (4)).
Potential Negative Impacts for People
- Time Limitation on Benefits: The tax exclusions and special gift tax treatments are not permanent; they do not apply to distributions made in taxable years beginning after December 31, 2030 (Section 2(a)(1)(5), (2)(2), (3)(E), and (4)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Young Adults+5Good For Seniors+4
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3
- Social Issues And Justice
- Improves Affordable Housing+4
- 4/9/2026
- 1 Cosponsor added.
- 2/23/2026
- 1 Cosponsor added.
- 2/20/2026
- 1 Cosponsor added.
- 2/11/2026
- 1 Cosponsor added.
- 1/30/2026
- 1 Cosponsor added.
- 1/21/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
Mike CollinsRepublican · Georgia
Jeff CrankRepublican · Colorado
Pat HarriganRepublican · North Carolina
Jefferson Van DrewRepublican · New Jersey
Randy WeberRepublican · Texas