Trump to unveil home buying plan involving retirement funds
BBC • • business
Key Points:
- President Donald Trump plans to announce a proposal allowing Americans to use retirement savings from 401(k) accounts for home down payments, with details to be unveiled at the Davos World Economic Forum next week.
- National Economic Council Director Kevin Hassett explained the concept involves using home equity as an asset within 401(k) accounts, potentially allowing these accounts to grow over time, though tax and penalty implications remain unclear.
- The initiative is part of broader efforts by the Trump administration to address housing affordability, including banning large corporate investors from buying single-family homes and directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower mortgage rates.
- Experts caution that while accessing retirement funds might help some buyers in the short term
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