First-time Home Buyer Savings Account

(1) An account holder cannot have more than one first-time home buyer savings account at a time, even if the accounts have different beneficiaries.

(2) An account holder may withdraw funds from a first-time home buyer savings account and deposit the funds into a new first-time home buyer savings account at the same or a different financial institution. To avoid the penalty for early withdrawal (five percent of the withdrawal) and the requirement to add back previously subtracted amounts, transfer of funds withdrawn from the existing account into the new account must be completed within 60 calendar days of the withdrawal. If all of the funds are not transferred into the new account, the account holder may avoid the penalty and add back on the funds kept in the old account if those funds are spent on eligible costs within the 60-day period or if the account holder is exempt from imposition of the penalty.