The Trump Administration is set to enact a significant policy shift allowing retirement savers access to a broader range of alternative investments.
President Donald Trump will sign an executive order granting permission for private equity (PE), real estate, and cryptocurrency to be included as approved alternative asset options within 401(k) retirement plans.
This move directly targets the diversification of investment choices available for American workers saving for retirement through 401(k) plans. It represents a notable change from the primarily traditional asset classes like stocks and bonds typically dominating these plans.
The executive order, expected to be signed imminently, aims to provide plan participants with the potential to pursue higher returns associated with these alternative asset classes. However, the unique risks and volatility, particularly associated with certain assets like cryptocurrency, historically led to regulatory caution in the retirement space.
Should the order lead to widespread plan adoption of these new options, millions of retirement savers could gain allocation choices previously largely unavailable or impractical within the standard 401(k) structure.