Washington, D.C. – Congresswoman Van Duyne (R-TX) and Congresswoman Brownley (D-CA) introduced the Uplifting First-Time Homebuyers Act, a bill intended to make it easier for first-time homebuyers by adjusting the IRA tax exemption withdrawal limit. 

In 1997 Congress created a tax exception for first-time homebuyers to withdraw up to $10,000 from their IRA. In 1997, the median home price was $115,000. Today that number is closer to $300,000. Currently, first-time homebuyers can withdraw up to $10,000 from their Individual Retirement Account (IRA) without facing the 10% early withdrawal penalty. This withdrawal can be used to buy, build, or rebuild a home. The Uplifting First-Time Homebuyers Act will increase the IRA homebuyer exception from $10,000 to $50,000, to better reflect the rising cost of homes.

“Buying a home for the first time is not as easy as it once was,” said Congresswoman Van Duyne. “Since my time serving as Mayor of Irving, Texas, I have seen how empowering homeownership is for families, neighborhoods, and the lifetime accumulation of wealth that can be passed down to further generations. By updating and increasing the IRA withdrawal limit, we increase access to much needed capital for our first-time homebuyers. Helping Americans realize the dream of homeownership is an investment in their future and a more stable future for our country.”

“Homeownership is one of the most important ways Americans build wealth and save for a secure retirement,” said Congresswoman Brownley. “But in high-cost states like California, too many first-time buyers are locked out of the market due to rising prices and the challenge of saving for a down payment. I am pleased to support Congresswoman Van Duyne's efforts to update our tax code to help first-time homebuyers access their retirement savings without penalty and take that critical first step toward homeownership.”

“The Uplifting First-Time Homebuyers Act is a smart, targeted step toward making homeownership more attainable,” said Shannon McGahn, Executive Vice President & Chief Advocacy Officer, National Association of REALTORS®. “By updating the outdated IRA withdrawal limit, this bill could give first-time buyers greater access to their own savings at the moment they need it most. With the median age of first-time buyers now at 38, this commonsense fix helps more Americans achieve the dream of homeownership earlier in life—and start building equity and long-term financial stability.”

Click HERE for bill text.

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