Former President Donald Trump expressed skepticism about a new proposal allowing first-time homebuyers to use up to $20,000 from their 401(k) retirement accounts without penalty to fund down payments. While the policy is part of a broader Republican plan to boost homeownership amid rising housing costs, Trump said he’s “not a huge fan” of tapping retirement savings, emphasizing the importance of preserving those funds for people’s later years.
The plan, backed by House Republicans and championed by House Ways and Means Committee Chair Jason Smith, aims to help buyers afford homes in a challenging market. Supporters argue it could make homeownership more accessible amid inflation and high mortgage rates. However, critics caution that encouraging early retirement withdrawals could undermine long-term financial stability.
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