The pros and cons of tapping your 401(k) for a down payment

Coming up with the cash for a down payment is not easy. If the goal of homeownership is out of reach because of that upfront amount required, you may be tempted to dip into the savings you have stashed for other purposes — like your retirement.

In fact, the Trump administration recently suggested this possibility, proposing to “allow investors to use some of their retirement funds to make a down payment on a ​house,” said Reuters. It is already an option to borrow against retirement funds through a 401(k) loan...