Overview

• President Trump’s August 7 executive order directs the Labor Department, SEC, and Treasury to revisit rules on alternative assets in defined-contribution plans within 180 days.
• On August 12, the Labor Department withdrew its 2021 cautionary statement on private equity in 401(k)s, saying it will return to a neutral, principles-based approach that avoids singling out asset types.
• ERISA’s prudence and loyalty standards remain unchanged for plan fiduciaries, and no immediate changes to plan investment menus are required.
• The review contemplates broader access to private equity, real estate, infrastructure, commodities, and digital assets, with potential new fiduciary safe harbors and related securities-rule adjustments under consideration.
• Public sentiment is cautious, with a survey cited by Newsweek finding 48% opposed and 34% supportive of opening 401(k)s to alternatives, and 80% unlikely to allocate to such assets.