Kevin Hassett, director of the National Economic Council, told Fox Business News on January 16 that the administration plans to “allow people to take money out of their 401(k)s and use that for a down payment.” He said that President Donald Trump plans to make a final plan at the end of Davos.

Trump finally made a side of the proposal when asked about it in Davos, told reporters he’s not “a big fan” of allowing 401(k) plan participants to use some of their savings to put down a deposit for a home. “I’m very happy with what the 401(k)s are doing,” he added.

Buying a home > retirement? Currently, 401(k) participants must pay an additional 10% tax of funds withdrawn from their account before age 59-and-a-half—also known as early distributions—for any number of reasons, including buying a home. The rules are different under Individual Retirement Accounts (IRAs), which allow qualified first-time homebuyers to withdraw up to $10,000 without incurring a 10% penalty.

Some employers allow workers to borrow from their 401(k) account balance to buy a home. low current IRS regulationsthis loan cannot exceed 50% of a participant’s balance, or $50,000.

Workers were already taking advantage of such options before Hassett floated this new policy idea. By 2024, nearly a quarter of home buyers surveyed by Zillow tap into their retirement funds (ie 401(k), IRA, or 403(b)) to help finance a down payment.

It’s unclear how the White House proposal compares to options already available, but Hassett said Fox The purpose of the business is to help Americans buy a home, and then put the money back into their 401(k) account using the equity from the home.

“We’re still talking about the mechanics of it, but let’s say you put 10% down on a home and then you take 10% of the home equity and put it as an asset in your 401(k), then your 401(k) grows over time as the value of your home grows,” he said.

Real estate and financial experts question the effectiveness of the plan. “I don’t understand how they do it. There’s no way to let people get the money back. You can’t contribute more than the allowed amount in any one year,” Craig Copeland, director of wealth benefits research with the Employee Benefit Research Institute (EBRI), told MarketWatch.

Allowing potential homebuyers access to previously illiquid assets could cause home prices to rise, Jake Krimmel, an economist at Realtor.com, said. the outlet said. “With constrained supply in the Northeast and Midwest, such a reform could make the affordability issue even worse,” he said.

While Trump has pivoted from the suggestion that Hassett floated, some lawmakers still seem interested in such a plan. Rep. John McGuire, a Republican from Virginia, introduces a bill in Jan. 21 that would allow penalty- and tax-free 401 (k) withdrawals for homebuying expenses, such as closing costs and down payments.

Historically high price and a low supply of the available houses made homeownership unreachable for many Americans in recent years. Because of these trends, some employers now offer home buying benefits their workers. The food processing company JBS USA, for example, INVESTED more than $20 million in affordable housing for workers in locations such as Cactus Texas, and Beardstown, Illinois. Some employers may help subsidize down payment to employees or closing costs, or contributing to the purchase of the mortgage.

This report is originally published through HR Brew.