09/02/2026
For the majority of Americans, wealth is concentrated within two assets: retirement accounts and housing. Together these represent about two-thirds of household assets. So, what happens if a household reallocates some of its retirement savings to purchase a home?
Under current law, first-time buyers can withdraw up to $10,000 from an IRA without paying the early withdrawal penalty if the funds are used toward a down payment on a home. A proposal in Congress, the Uplifting First-Time Homebuyers Act, would raise that limit to $50,000.
Real Property K.C. - Realty One Group
Comparing two scenarios, we examine what happens when a household reallocates some of its retirement savings to purchase a first home.