Overview

• President Donald Trump’s Aug. 7 executive order directs regulators to make room for alternative assets—including private equity, real estate and cryptocurrencies—in defined‑contribution plans.
• The SEC issued guidance ADI 2025-16 this week ending a long‑standing 15% cap on private investments in registered closed‑end funds, a move aligned with the order’s push for broader access.
• The Department of Labor is reevaluating fiduciary‑duty rules and potential safe harbors for plan sponsors, as legal exposure over illiquid, high‑fee options remains a central hurdle.
• Private‑equity firms are positioning for retirement inflows from a roughly $12 trillion 401(k) market, with industry strains such as a $1.5 trillion capital call–distribution gap and product changes like KKR’s larger retail carve‑outs.
• Financial advisors say most savers should stick to low‑cost stock and bond funds, reserving alternatives for risk‑tolerant investors via professional managers, and they expect any plan‑menu changes to roll out over months.