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Trump Rejects 401(k) Homebuyer Withdrawal Proposal Amid Concerns

1/25/2026

Summary

Story summary

U.S. President Donald Trump opposes a proposal to let homebuyers withdraw from 401(k) accounts for down payments, citing the strong performance of these funds.
National Economic Council Director Kevin Hassett indicated the proposal would be part of an executive order on housing affordability.
Experts warn the plan could raise leakage from retirement savings and complicate tax laws, while the administration also considers withdrawals from 529 plans for home purchases.

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Story summary

U.S. President Donald Trump opposes a proposal to let homebuyers withdraw from 401(k) accounts for down payments, citing the strong performance of these funds.
National Economic Council Director Kevin Hassett indicated the proposal would be part of an executive order on housing affordability.
Experts warn the plan could raise leakage from retirement savings and complicate tax laws, while the administration also considers withdrawals from 529 plans for home purchases.