Uplifting First-Time Homebuyers Act of 2025

The Uplifting First-Time Homebuyers Act of 2025 would amend the Internal Revenue Code to raise the limit on qualified first-time homebuyer distributions from IRAs. Specifically, it replaces the current $10,000 cap with a $50,000 cap for distributions that can be taken penalty-free to pay for a first-time home purchase. These distributions remain subject to ordinary income tax (they are not subject to the 10% early-withdrawal penalty under §72(t)). The change applies to taxable years beginning after December 31, 2024. The bill is narrowly focused on this provision and does not introduce other major tax-law changes. The bill is titled in short form as the “Uplifting First-Time Homebuyers Act of 2025.” It was introduced in the Senate by Senators Gallego (and co-sponsored by Senator Young) and referred to the Senate Committee on Finance.