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.

HR10944, introduced on October 29, 2026, by Rep. Steube (R-FL) with bipartisan cosponsors Rep. Panetta (D-CA) and Rep. Carey (R-OH), would amend the Internal Revenue Code to exclude from gross income certain retirement plan distributions used for a down payment or closing costs on a principal residence. The bill has been referred to the House Committee on Ways and Means, the first step in the legislative process. As an authorization-level tax bill, it does not appropriate funds; instead, it would reduce federal revenue by exempting qualified distributions from taxation, effectively a tax expenditure. The mechanism directly affects individual taxpayers, not corporations, and the obligated party is the IRS in terms of tax collection. The direct consequence is that homebuyers would have more after-tax funds available for upfront home purchase costs, potentially increasing demand for housing and mortgage origination. However, the magnitude is constrained by retirement account balances and existing penalty-free withdrawal rules. For the retirement plan administration industry, increased withdrawals could reduce assets under management, but the effect is likely small given the limited scope. The bill is in early stage with only three actions (introduction and referral), and no committee markup or floor votes scheduled. Legislative momentum is low; passage in the 119th Congress is uncertain. The bipartisan sponsorship provides some tailwind, but the bill faces a long path through committee, potential floor debate, and Senate consideration before reaching The President's desk.