President Trump is said to have expressed reluctance to back penalty-free use of tax-advantaged 401(k) funds for down payments as he returned from the World Economic Forum in Davos, Switzerland.

Trump reportedly told representatives of news outlets like The Hill and USA Today who asked about the concept that he is "not a huge fan of" the diversion of funds from these accounts for that purpose because "401(k)s are doing so well," and "you're talking about a lot of people."

This suggests the president is hesitant to advance that particular idea, which National Economic Director Kevin Hassett brought up just prior to discussions around finance and housing at Davos. But it does not rule out future ideas for limited use of tax-advantaged funds for a similar purpose.

Indications other concepts could still be on the table

A Trump-backed tax bill that passed last year authorized a temporary test of tax-advantaged savings accounts for children born during his term, which experts say allow up to $10,000 of funds to be used for down payments in adulthood without penalty.

Many of the housing ideas Trump has been exploring have been contingent on congressional support, and there previously have been some bipartisan interest in creating tax-advantaged vehicles for housing similar to 529 accounts used for education. 

The tax bill passed last year did expand the use of 529 accounts for some penalty-free educational purposes beyond college but did not go so far as to make them applicable to housing.

Individual retirement accounts allow penalty-free use of funds for certain real estate investments within certain limits.