EXPANDING INVESTMENT CHOICES FOR 401(K) PLANS
Today, President Donald J. Trump signed an Executive Order opening the door for 401(k) investors to access alternative assets, aiming to deliver stronger returns and greater portfolio diversification.
The Order:
Directs the Secretary of Labor to revisit the Department of Labor’s guidance on fiduciary duties for alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans.Instructs the Secretary of Labor to clarify the Department’s position on alternative assets and the proper fiduciary process for offering funds that include them. Requires the Secretary of Labor to consult with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulators to consider parallel regulatory adjustments that align with the Order’s goals. Directs the SEC to update regulations and guidance to expand participant access to alternative assets within defined-contribution retirement savings plans.
PROMOTING RETIREMENT SECURITY THROUGH DIVERSIFIED INVESTMENTS
President Trump’s initiative is designed to give American workers broader investment choices, helping them achieve stronger, more financially secure retirements. Over 90 million Americans participate in employer-sponsored defined-contribution plans, yet most are barred from accessing alternative assets available to wealthy investors and government worker pensions. Alternative assets—such as private equity, real estate, and digital assets—offer the potential for competitive returns and enhanced diversification.
Regulatory burdens and litigation concerns have historically discouraged fiduciaries from including these options in ERISA plans, limiting retirement growth for workers. By expanding access, President Trump seeks to ensure that all Americans have the opportunity to retire with dignity, stability, and confidence.
BUILDING WEALTH AND SECURING RETIREMENT FOR ALL AMERICANS
President Trump is delivering on his commitment to expand financial opportunities and retirement security, empowering every American to build wealth and prosper. His Department of Labor has already rolled back Biden-era restrictions on digital assets in retirement accounts.
Through his One Big Beautiful Bill, President Trump has acted to protect retirees’ hard-earned benefits. He has pledged to establish the United States as the “crypto capital of the world,” underscoring the importance of embracing digital assets to drive economic growth and innovation. With tax cuts and deregulation, President Trump is advancing his vision to Make America Wealthy Again, enabling workers to save more, invest more, and secure brighter futures.