EXPANDING INVESTMENT CHOICES FOR 401(K) PLANS: President Donald J. Trump signed an Executive Order to allow 401(k) investors to access alternative assets for better returns and diversification.
- The Order directs the Secretary of Labor to reexamine the Department of Labor’s guidance on a fiduciary’s duties regarding alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans.
- The Order instructs the Secretary of Labor to clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary process associated with offering asset allocation funds containing investments in alternative assets.
- The Order directs the Secretary of Labor to consult with the Secretary of the Treasury, the Securities and Exchange Commission, and other federal regulators to determine whether parallel regulatory changes should be made at those agencies to give effect to the purpose of the Order.
- The Order directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance.
PROMOTING RETIREMENT SECURITY THROUGH DIVERSIFIED INVESTMENTS: President Trump wants to give American workers more investment options in order to attain stronger and more financially secure retirement outcomes.
- More than 90 million Americans participate in employer-sponsored defined-contribution plans, and most of those are currently restricted from investing in alternative assets, unlike wealthy investors and retirement plans for government workers.
- Alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits.
- Regulatory overreach and litigation risks have limited ERISA-governed plan fiduciaries from including alternative assets in their investment portfolios, hindering workers’ retirement growth.
- President Trump is expanding access to these assets to ensure a dignified and comfortable retirement for all Americans.
BUILDING WEALTH AND SECURING RETIREMENT FOR ALL AMERICANS: President Trump is delivering on his promise to enhance financial opportunities and retirement security for all Americans, ensuring they can build wealth and thrive.
- President Trump’s Department of Labor has already rescinded guidance put place by the Biden Administration regarding digital assets.
- President Trump’s One Big Beautiful Bill delivers on his promise to ensure retirees can keep more of their hard-earned benefits.
- President Trump promised to make the United States the “crypto capital of the world,” emphasizing the need to embrace digital assets to drive economic growth and technological leadership.
- Through tax cuts and deregulation, President Trump is delivering on his promise to Make America Wealthy Again, empowering workers to save and invest more for their retirement.
Source: White House
