The White House has issued an executive order establishing a policy that Americans saving for retirement should be able to access funds with alternative asset exposure in 401(k) and other defined-contribution plans where plan fiduciaries determine this is appropriate. It directs the Department of Labor to reexamine and clarify how fiduciaries can prudently offer asset allocation funds that include alternative assets under the Employee Retirement Income Security Act of 1974 (ERISA), and calls on the Securities and Exchange Commission (SEC) to consider ways to facilitate such access. The order defines “alternative assets” to include private market investments, real estate, actively managed vehicles investing in digital assets, commodities, infrastructure project financing, and lifetime income investment strategies including longevity risk-sharing pools. Within 180 days, the Secretary of Labor must review the Department of Labor’s past and current guidance on ERISA fiduciary duties for offering asset allocation funds that include alternative assets, including whether to rescind the Department’s December 21, 2021 Supplemental Private Equity Statement, and to clarify the fiduciary process for balancing potentially higher expenses against objectives of higher long-term net returns and diversification. The Department of Labor is also directed to propose rules, regulations, or guidance that may include calibrated safe harbors and to prioritize actions intended to curb ERISA litigation that constrains fiduciaries’ decision-making; implementation is to be coordinated as appropriate with the Department of the Treasury, the SEC, and other federal regulators. The SEC, in consultation with the Secretary of Labor, must consider measures to facilitate access for participants in participant-directed defined-contribution plans, including potential revisions to existing SEC regulations and guidance on accredited investor and qualified purchaser status.
The White House 2025-08-07
The White House issues executive order directing the Department of Labor and SEC to facilitate 401(k) access to alternative assets
The White House issued an executive order allowing Americans to access alternative assets in 401(k) and other defined-contribution plans, contingent on fiduciary approval. The Department of Labor will review ERISA fiduciary duties and propose rules to balance higher expenses with long-term returns, while the SEC will explore facilitating access through potential regulatory revisions. The order includes private market investments, real estate, digital assets, and other alternative assets.