Democratizing Access to Alternative Assets for 401(k) Investors
Headline: Expands 401(k) Access to Alternative Asset Investments Nationwide
What it does: The Department of Labor must reexamine and clarify guidance on the laws governing retirement plans and propose rules to enable 401(k) funds to include alternative assets.
- May allow 401(k) savers access to private equity, real estate, and digital assets.
- Reduces legal risk for retirement plan managers when offering new investments.
- Could prompt changes to investor eligibility rules affecting who can invest.
Summary
This order directs the Department of Labor to reexamine and clarify rules that govern what employer retirement plans can offer to make alternative assets—like private equity, real estate, digital assets, commodities, infrastructure projects, and income strategies—available to 401(k) and defined-contribution plan participants. Labor must consider withdrawing a 2021 private equity statement, propose rules or clear protections for fiduciaries, and consult with the Treasury and the SEC on investor eligibility rules. The order says this will expand investment choices, reduce lawsuits against plan managers, and help savers seek higher long-term returns and diversification.
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