New Bill Would Let College Savers Use Leftover Money To Buy a First Home

A bipartisan bill could let people use a common college savings financial tool to pay for their first house.The First-Time Homebuyer Empowerment Act would let people use up to $35,000 from a 529 college savings account for a down payment on their first home. It's the latest idea in a line of congressional bills that would let Americans cut their taxes while they save for a home.Sens. Michael Bennet (D-CO) and Jon Husted (R-Ohio) introduced the bill in the Senate, while Rep. Tracey Mann (R-KS) led a bipartisan group of 11 co-sponsors in the House."Too many Ohioans have worked hard, saved responsibly, and still struggle to afford a down payment," Husted said. "By freeing up existing resources, I’m proud this bipartisan bill gives first-time homebuyers another tool to use in pursuing their version of the American dream.”A 529 Education Savings Account, also known as a college savings plan, is a tax-advantaged savings account for education expenses. Typically, these plans are tax-deferred, and they allow for tax-free withdrawals if they are used for tuition, fees, and supplies. Americans can use them to set aside hundreds of thousands of dollars for a college or trade school.Eliminatin...