❓WHAT HAPPENED: The Department of Labor proposed a regulation to expand retirement investment options for Americans, with the inclusion of alternative assets in 401(k) plans.
👤WHO WAS INVOLVED: Department of Labor, Secretary of Labor Lori Chavez-DeRemer, Secretary of the Treasury Scott Bessent, and U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins.
📍WHEN & WHERE: The new rule was announced on Monday, March 30, 2026.
💬KEY QUOTE: “Americans’ ability to participate more fully in innovation and economic growth through well-diversified long-term investments is a vitally important priority for effective retirement planning.” – SEC Chairman Paul Atkins
🎯IMPACT: The new rule broadens access to alternative retirement investments for over 90 million Americans and could potentially increase 40(k) returns by roughly 50 basis points annually.
The Trump administration unveiled a new federal rule aimed at increasing retirement investment options for more than 90 million Americans, including opening 401(k) plans to investments in private equity, real estate, digital assets, and private credit. Under the new regulatory guidance issued on Monday by the Department of Labor’s Employee Benefits Security Administration (EBSA), the average American saving for retirement is expected to see better returns, improved diversification, and access to private-market opportunities typically restricted to wealthy investors.
Notably, the new guidance for 401(k) plan managers outlines steps for considering alternative assets and establishing safe harbors for plan fiduciaries when selecting investment alternatives. The proposal is a result of President Donald J. Trump’s August 7, 2025, Executive Order democratizing access to alternative assets for 401(k) investors.
“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families,” said Secretary of Labor Lori Chavez-DeRemer. Meanwhile, Treasury Secretary Scott Bessent hailed the regulatory change, emphasizing “the proposed rule is an initial step in implementing the President’s Executive Order in a safe and smart manner, broadening access to additional retirement plan options for millions of Americans while being mindful of the importance of protecting retirement assets.”
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins, addressing the rule change, stated, “Americans’ ability to participate more fully in innovation and economic growth through well-diversified long-term investments is a vitally important priority for effective retirement planning.”
The Department of Labor emphasized that the lack of regulatory clarity has long made managers of defined contribution plans wary of alternative investments, even though such investments are technically legal. “In 2022, the Biden Administration further stifled these investments through a rescinded compliance release that warned fiduciaries about including cryptocurrency options in 401(k) plans,” the agency stated. Importantly, some projections suggest the new rule could potentially increase 401(k) returns by roughly 50 basis points annually.
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