Recently, President Donald Trump issued an executive order calling for the review of alternative assets in 401(k) plans.
This executive order has the potential to change how alternative assets are treated in defined contribution retirement plans and has the Department of Labor looking at past guidance on the issue.
So, what does it all mean? The executive order doesn’t call for any changes initially, but it could force change to current fiduciary standards and mean there are more alternatives in 401(k) plans, such as:
- How risk is assessed by fiduciaries
- The scope of permissible asset classes
- How plan participants are informed about investment options
None of this is immediate; however, the executive order has the potential to change regulatory expectations and influence decisions of plan sponsors.
Under the executive order, the DOL must reexamine past guidance and clarify how fiduciaries weigh higher fees – within 180 days. Also, the order states that the DOL must work with Treasury and the SEC.
For plan sponsors, this could open the door for ways to offer alternative assets in 401(k) plans – meaning more diversity and possibly more long-term growth opportunities.
The true long-term impact of this order is still unknown, but plan sponsors should keep an eye on developments as clarity comes in the coming months – likely in early 2026.
Keep an eye on this space for more information. We’ll be sharing more information and tips – keeping you up to date!
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If you have other questions about retirement plan loans, email us or call 937.308.0758.
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