Weird that this article doesn't mention the fact that you can already use your 401k not just for a downpayment, but for whatever. Generally you can borrow the lesser of $50k or 50% of your balance from your 401k.
You are already able to use 401k funds for this! Either as a loan to yourself, or as an "economic hardship withdrawal" (not hard to do if you actually need the money for a down payment).
In essence, all they are proposing is a way for wealthy people to avoid taxes by putting money into a 401(k) and then pull it out tax free to spend on properties.
I bet they would combine this with a raise on the contribution cap.
Weird that this article doesn't mention the fact that you can already use your 401k not just for a downpayment, but for whatever. Generally you can borrow the lesser of $50k or 50% of your balance from your 401k.
Great! Burn retirement money propping up house/condo prices...
More money moving from the young to the old.
You are already able to use 401k funds for this! Either as a loan to yourself, or as an "economic hardship withdrawal" (not hard to do if you actually need the money for a down payment).
In essence, all they are proposing is a way for wealthy people to avoid taxes by putting money into a 401(k) and then pull it out tax free to spend on properties.
I bet they would combine this with a raise on the contribution cap.
Absolute grift.