H.R. 7393 — Save for Success Act

This section allows distributions from qualified tuition programs (i.e., 529 plans)—tax-advantaged savings accounts primarily for higher education expenses—for qualified housing expenses of first-time homebuyers without application of the general income inclusion rule under IRC §529(c)(3)(A), effective for distributions after December 31, 2026. Qualified housing expenses include costs to purchase a principal residence (as defined in IRC §121), such as closing costs and mortgage payments, provided the designated beneficiary (and spouse, if married) had no ownership interest in a principal residence during the prior three years (i.e., first-time homebuyer, as defined similarly to former IRC §36(c)).