Sharon Chapman

The Trump administration plans to announce next week a proposal allowing Americans to tap their 401(k) plans for a home down payment.

White House National Economic Council Director Kevin Hassett told Fox Business that President Donald Trump will unveil the plan in Davos. “We’re still talking about the mechanics of it, but suppose that you put 10% down on a home and then you take 10% of the equity on the home and put it in as an asset in your 401(k), then your 401(k) would grow over time as the value of your house grows,” Hassett said.

“It would be more money for retirement, and you’ll have solved the liquidity constraint problem and gotten yourself a house earlier in life,” he added, citing sharply higher down payments and monthly housing costs in recent years.

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