Home Savings Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7185 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7185 To amend the Internal Revenue Code of 1986 to exclude from gross income certain retirement plan distributions used for a down payment or closing costs for a principal residence, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 21, 2026 Mr. McGuire introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude from gross income certain retirement plan distributions used for a down payment or closing costs for a principal residence, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Home Savings Act''. SEC. 2. EXCLUSION FROM GROSS INCOME OF RETIREMENT PLAN DISTRIBUTIONS USED FOR A DOWN PAYMENT OR CLOSING COSTS FOR A PRINCIPAL RESIDENCE. (a) In General.-- (1) Defined contribution plans.--Section 402 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: ``(m) Distributions for a Down Payment or Closing Costs for a Principal Residence.-- ``(1) In general.--The gross income of an employee for any taxable year shall not include any distribution from a defined contribution plan of such employee to the extent that such distribution is used for a down payment or closing costs associated with acquiring a principal residence of-- ``(A) the employee, or ``(B) an eligible relative of the employee. ``(2) Definitions.--For purposes of this subsection-- ``(A) Eligible relative.--The term `eligible relative' means, with respect to any employee-- ``(i) the spouse of the employee, or ``(ii) any child, grandc