My idea about getting rid of the 401K penalty for paying down the mortgage or down payment on a house would at least put some skin in the game for homeowners/buyers.I’m not talking loan or gift but some relaxing of the rules. It would even benefit the government with more tax revenue. Right now the only way it can be done is with a loan or penalty(if no longer employed by administrator of plan). I think it is a win-win idea, I personally would not benefit from the idea but many would. Would it hurt the stock market? Probably a little but I think the market right now is strong enough to handle it.
