The Save for Success Act allows families to withdraw money from 529 college savings plans to help pay for their first home purchase, including down payments, closing costs, and mortgage payments. Currently, 529 plans can only be used for education expenses without penalty, so this bill expands their use to help first-time homebuyers who have not owned a home in the previous three years. The legislation applies to distributions made after December 31, 2026, and affects individuals and families who have accumulated savings in qualified tuition programs but are struggling to afford housing. There is no specific funding amount mentioned in the bill since it operates through the existing 529 plan structure by changing tax rules. This change aims to help people build wealth by removing barriers between different financial goals, allowing education savings to be repurposed for the significant expense of buying a primary residence.
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