President Donald Trump will announce a plan next week allowing Americans to use funds from their 401(k) retirement accounts for home down payments, National Economic Council Director Kevin Hassett said Friday.
Hassett disclosed the proposal during an interview with Fox Business, saying Trump would present the final plan at the World Economic Forum in Davos, Switzerland next week.
The mechanics of the program are still being finalized, according to Hassett. He outlined one potential approach: a homebuyer could put 10% down on a home and then transfer 10% of the home’s equity into their 401(k) as an asset. As the home appreciates in value, the retirement account would grow accordingly.