Buying a house feels out of reach for many Americans.
So what if your retirement savings could help cover the down payment?
That’s the idea behind a new proposal President Donald Trump is expected to unveil next week.
According to National Economic Council Director Kevin Hassett, the plan would allow Americans to tap their 401(k) retirement accounts to help buy homes.
“You put 10% down on a house, then take 10% of the home’s equity and place it back into your 401(k),” Hassett explained.
In theory, your retirement account would grow alongside your home’s value.
Details are still thin. Questions about tax penalties, fees, and safeguards remain unanswered.
Currently, withdrawing from a 401(k) usually comes with a financial sting.
Supporters say the idea could help buyers stuck on the sidelines.
Critics Question Impact
But critics aren’t convinced it fixes the real problem.
“It doesn’t solve the housing affordability crisis,” said Redfin economist Daryl Fairweather.
Warning that draining retirement savings could backfire if home prices fall.
Others argue it could even push prices higher by giving wealthier buyers more firepower.
Only about 55% of Americans even have retirement accounts, and low-income workers are least likely to benefit.
Trump has also floated banning corporate buyers from single-family homes and boosting mortgage bond purchases to lower rates.
Will it work? Maybe. Or maybe it’s another reminder that there’s no easy fix for a housing market that refuses to cool down.
