Down Payment – Home Buyer Savings

Do you know somebody saving for a home down payment?  Here’s five things you need to know about the 2017 First-Time Homebuyer Savings Account Act:

  • Individuals or couples can establish a dedicated savings account at their local bank or credit union for the purchase of a first home in Minnesota regardless of their income.

  • Parents or grandparents can open an account for their children or grandchildren and contribute to those accounts as well.

  • Account holders can save up to $150,000 total with interest and dividends. Maximum contributions are set for married joint filers at $100,000 and all other filers at $50,000.

  • Annual contributions are capped at $28,000 for married joint filers and $14,000 for all other filers.

  • All interest and dividends earned on this account can be claimed as a state income tax deduction.

  • During the 2020 session, Minnesota Realtors® supports expanding the reach and effectiveness of the 2017 law by:

    • Allowing contributions to be claimed as a deduction from state taxes (as originally proposed in the 2017 bill)

    • Creating a tax incentive for employers to voluntarily contribute to employees’ first-time home buyer savings accounts

     

 

Buyers might also want to read:

 

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.