This bill amends the Internal Revenue Code of 1986 to significantly increase the amount individuals can withdraw from their individual retirement plans without penalty for a first-time home purchase. It raises the penalty-free distribution limit from $10,000 to $25,000 , aiming to provide greater financial flexibility for first-time homebuyers. These changes will apply to distributions made after December 31, 2025, in taxable years ending after that date. Additionally, the legislation includes a provision for an inflation adjustment , ensuring the $25,000 limit is periodically updated for taxable years beginning after 2026 to maintain its purchasing power.