A bill to amend the Internal Revenue Code of 1954 to provide that individual retirement accounts may be used as security on a loan used to purchase a residence by a first-time home buyer or to purchase an automobile.

Amends the Internal Revenue Code to allow the use of an individual retirement account or an individual retirement annuity contract as security for a loan if: (1) such security does not exceed 85 percent of the account or annuity balance; and (2) the proceeds of the loan are used for the acquisition (by the individual for whose benefit the account is established) of an automobile or a dwelling which is the first dwelling owned by such individual and which constitutes the principal residence of such individual.