41-163: First-Time Homebuyer Withdrawal Form 41-163 (Revision 2026-06)
Iowa · Iowa DOR · Used for tax years 2024, 2025, 2026
The Iowa First-Time Homebuyer Savings Account Withdrawal Form reports withdrawals from a designated savings account. It records account holder and beneficiary information, the amount and date withdrawn, the remaining balance, and how the funds were used.
Who files this form
Account holders must submit this form for any withdrawal, in any amount, from an Iowa first-time homebuyer savings account.
- Fees and charges deducted by the financial institution that holds the account are not considered withdrawals and must not be reported.
- Married couples filing separate Iowa income tax returns must maintain separate accounts to participate and submit separate withdrawal forms.
- If funds from more than one first-time homebuyer account were used for a qualified home purchase, submit a separate withdrawal report for each account.
When it's due
- Withdrawal reporting: Submit the form within 90 days of the date of any withdrawal. Forms submitted later than 90 days after withdrawal will not be accepted.
- FirstHome Iowa transfers: Existing account balances may be withdrawn and deposited into a FirstHome Iowa program trust within 30 days without penalty.
- 2026 account-opening cutoff: First-time homebuyer savings accounts cannot be opened after June 30, 2026.
What you'll need
Have the account holders’ names and Social Security numbers, the primary holder’s address, the beneficiary’s name and Social Security number, and the financial institution’s name, routing number, and account number ready.
For every withdrawal: Include copies of bank statements or receipts showing the account balance before the withdrawal, the withdrawal amount and date, and the balance afterward.
Additional information or documents depend on how the funds were used:
- Qualified home purchase: Provide a statement listing the seller, all purchasers, the home’s address, closing date, purchase price, amount of account funds used, and the specific costs paid with those funds. If the funds were applied on a date other than closing, also include a statement describing how they were used.
- Transfer to another first-time homebuyer account owned by the same holder and made by someone other than the holder: Provide the receiving account’s number, financial institution, and designated beneficiary. Include bank statements or receipts showing its balance before the transfer, the transfer amount and date, and its balance afterward.
- Withdrawal resulting from the account holder’s death: Provide the date of death. You may enter it in the description of use of funds instead of providing a separate document.
- Withdrawal required by a garnishment, levy, or other order: Include a copy of the order requiring the withdrawal.
How to file
- Enter the account holder, financial institution, account, and beneficiary information.
- Enter the withdrawal amount and date, and the ending account balance. These must match the supporting documents.
- If applicable, enter the FirstHome Iowa deposit date, the qualified home purchase date or date funds were applied to qualified expenses, and the home’s address.
- Describe in detail how the funds were used and attach the required supporting documents.
- Sign and date the form in the account holder signature spaces.
Submit the form separately from your income tax return and any other form or payment, unless the Department directs otherwise.
Mail it to:
Iowa Department of Revenue
PO Box 1792
Des Moines, IA 50306-1792
Common mistakes
- Submitting late: Forms submitted more than 90 days after the withdrawal will not be accepted.
- Leaving out required bank records: Every withdrawal needs documentation showing the balance before and after, plus the withdrawal amount and date. Missing required documentation causes the withdrawal to be presumed non-qualified and subject to taxes and penalties.
- Not adequately explaining a home purchase withdrawal: Without adequate support showing that funds were applied to a qualified home purchase, the Department will presume the withdrawal was non-qualified. The withdrawal and any resulting deemed withdrawals will be subject to taxes and penalties.
- Skipping beneficiary information because it matches the account holder: You must still re-enter the beneficiary’s name and Social Security number.
- Reporting bank-assessed fees as withdrawals: Fees and charges deducted by the financial institution holding the account must not be reported.
- Combining reports for multiple accounts: If more than one account funded a qualified purchase, each account needs a separate withdrawal report.
Questions people ask
Can I be both the account holder and the designated beneficiary?
Yes. You must still enter your name and Social Security number again in the beneficiary section. For a withdrawal to be qualified, the beneficiary must qualify as a first-time homebuyer when the withdrawal is made.
Who can be a secondary account holder?
Only the primary account holder’s spouse, when the spouses jointly own the account and file a joint Iowa individual income tax return.
Can I move my balance into a FirstHome Iowa account without a penalty?
Yes. Existing first-time homebuyer savings account balances may be withdrawn and deposited into a FirstHome Iowa program trust within 30 days without penalty. Enter the deposit date on the withdrawal form.
Does a withdrawal caused by death or a court order receive the 10% penalty?
Withdrawals resulting from the account holder’s death or made under a garnishment, levy, or other order, including a bankruptcy order, are non-qualified withdrawals but are not subject to the 10% penalty assessed on other non-qualified withdrawals. State the reason and provide the required supporting information.
Where can I find my routing number and account number?
If you are unsure where to find them, contact your financial institution.