Groom principal and fiduciary practice leader, Michael Kreps, weighs in on the Bloomberg Law article, “Trump’s 401(k) Home Buyer Idea Requires Retirement Rule Shifts,” which discusses how “[a] forthcoming White House proposal to allow use of 401(k)s for down payments on home purchases would mean shifts in long-held regulations on plan withdrawals, and possibly new legislation.”
Kreps commented on National Economic Council Director Kevin Hassett’s example of an individual reinvesting home equity funds into their 401(k) plan. Kreps described that “as both a policy issue and an administrative one that would require broad relief from either Congress or the Department of Labor.” He further explained, “‘It’s not as simple as let everyone own houses in their 401(k). It’s highly regulated,’ [and] ‘You would need a lot of relief to make that work and somehow figure out administratively how a recordkeeper is going to deal with it.’”
To read the article, click here.
