The Trump administration plans to allow workers to use 401(k) savings for home purchases without penalty, but Congress must approve. This may not be feasible due to 401(k) regulations. Leakage from retirement accounts poses a risk, with many unable to replace withdrawn funds. The 401(k) loan system offers an alternative solution. Homeownership may impact retirement security, affecting affordability. People withdraw from 401(k) plans for home purchases, facing penalties and taxes. Financial advisers warn against depleting retirement savings, advising loans over withdrawals. Proposal’s impact on U.S. affordability crisis uncertain. A “kick-the-can-down-the-road” strategy, risking future financial stability. Join the retirement conversation for more insights.

Read more at Yahoo Finance: Trump wants to let you take money from your 401(k) to buy a house. Putting it back is complicated.