Many Americans struggle to save enough for a down payment, and the idea of tapping retirement savings can be tempting. This possibility drew national attention after President Donald Trump’s administration floated — and then quickly retreated from — a proposal to allow penalty-free 401(k) withdrawals to help Americans buy homes.
In mid-January, Kevin Hassett, director of the National Economic Council, told Fox Business that the administration was preparing a plan to let buyers pull from their 401(k) plans for down payments. But just days later, Trump said he was “not a huge fan” of the idea, arguing that 401(k) plans were performing too well to risk early withdrawals, CNBC reported.
