Key Takeaways
Trump’s executive order aims to open 401(k) retirement accounts to private assets like private equity, real estate, and crypto.
The policy could create new investment options and risks for retirement savers while expanding opportunities for asset managers.
President Donald Trump is expected to issue an executive order on Thursday that would lay the groundwork for allowing private equity, real estate, crypto, and other alternative assets to be included in 401(k) retirement plans, Bloomberg reported today, citing a person with knowledge of the plans.
As of March 31, 2025, Americans held over $12 trillion in employer-based Defined Contribution (DC) retirement plans, with approximately $9 trillion of that in 401(k) plans, according to data from the Investment Company Institute.
As reported, the order would instruct the Department of Labor to reevaluate existing guidance that has long discouraged the inclusion of illiquid or complex assets in retirement plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). Labor officials would also be directed to clarify fiduciary responsibilities for plan sponsors offering asset allocation funds with exposure to alternatives.
Trump would further direct Labor Secretary Lori Chavez-DeRemer to coordinate with the Treasury Department, Securities and Exchange Commission, and other federal agencies on potential rule changes that would expand access to alternatives to participant-directed retirement plans.
The SEC is expected to play a key role in enabling these products to enter the 401(k) landscape.
The goal of Trump’s executive order is to ease restrictions that have historically kept alternative assets like private equity, real estate, and crypto out of 401(k) retirement plans.
