Trump administration proposes retirement savings access to private equity, private credit and cryptocurrency
Updated
Updated · The New York Times · May 5
Trump administration proposes retirement savings access to private equity, private credit and cryptocurrency
11 articles · Updated · The New York Times · May 5
The Labor Department put forward the plan to carry out a recent Trump executive order, potentially expanding options for Americans' individual retirement accounts and 401(k)s.
Supporters say ordinary savers should access the same higher-return private assets available to institutions and wealthy investors, but critics warn the products are complex, opaque, illiquid and risky.
The proposal could deepen concerns that US retirement systems already place too much investment responsibility on individuals, who often underperform simple index-fund strategies when choosing investments.
Will adding high-risk assets to retirement plans close the wealth gap, or expose millions to the next market collapse?
As 401(k)s open to private equity and crypto, what will shield savers from risks that even professionals find daunting?
Navigating the 2025 DOL Safe Harbor Rule: Integrating Alternative Investments into 401(k) Plans
Overview
In response to President Trump's August 2025 Executive Order, the Department of Labor proposed a March 2026 rule establishing a clear six-factor framework for fiduciaries to include alternative investments like private equity in 401(k) plans. This framework offers a safe harbor to reduce costly litigation, addressing over 500 lawsuits since 2016. While proponents highlight diversification and long-term growth benefits, critics warn of high fees, liquidity constraints, and complexity that pose risks to typical savers. The SEC is also reviewing investor accreditation rules to broaden access. Adoption will be gradual, balancing potential retirement benefits with operational challenges and legal uncertainties.