To amend the Internal Revenue Code of 1986 to permit tax-free withdrawals from individual retirement plans or section 401(k) plans for the acquisition of the first principal residence of the taxpayer or a member of the taxpayer's family.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to exclude from the gross income of an individual up to $10,000 of distributions from an individual retirement account or qualified pension plan used within 180 days to purchase a residence that will be the first residence in which the taxpayer has a present ownership interest. Reduces the excludible amount for taxpayers with adjusted gross income above $30,000 ($50,000 for joint returns). Exempts from the penalty tax on early distributions from qualified retirement plans comparable withdrawals used to purchase the first residence in which the taxpayer's child has a present ownership interest.…