🏆 Winners 1. First-Time Homebuyers Struggling With Affordability - People who are unable to come up with a down payment could enter the housing market sooner. - Especially beneficial for younger Americans with decent 401(k) balances but limited savings. 2. The Real Estate Industry - More buyers = more demand. - Realtors, mortgage brokers, appraisers, and homebuilders could see a boost in business. 3. Politicians Promoting “Homeownership” - Policies like this play well politically, especially with millennials and Gen Z who feel priced out of the market. - It gives the appearance of doing something big about housing affordability — even if it doesn’t address the root issue. 4. People in Hot Real Estate Markets - In high-growth cities or low-inventory markets, this added demand could drive prices even higher. - Existing homeowners benefit from price appreciation. 💸 Losers 1. Future Retirees Who Withdraw Funds - The biggest loser is likely you 30 years from now. - Withdrawing from your 401(k) cuts into compound growth, which is often the key to a secure retirement. - Many people may never “rebuild” that retirement balance once it's withdrawn. 💡Example: Pulling $40,000 at age 30 could cost you over $300,000 at retirement, assuming 7% growth. 2. The Broader Retirement System - This undermines the original purpose of 401(k)s, which is long-term retirement savings. - It sets a precedent that retirement accounts are just piggy banks for near-term needs, weakening financial discipline. 3. Taxpayers (If the Plan Includes Forgiveness or Defaults) - If this policy includes penalty-free and tax-free treatment, it reduces future tax revenues. - If borrowers default on mortgages or lose homes, there could be broader economic spillovers. 4. People Who Stay Invested in 401(k)s During Market Rallies - If a participant withdraws during a market dip to buy a house, they lock in losses. - Meanwhile, others who leave money in may benefit from the rebound.

Looking forward to learning how to lower my taxes so that we can spend less time working and more time with the kids!