Executive Order Opens Door to Alternative Assets in 401(k)s: Key Considerations for Plan Fiduciaries

On August 7, 2025, President Donald Trump released an executive order to attempt to permit alternative assets among 401(k) investment options. It marks a shift away from Biden-era guidance that discouraged alternative assets in 401(k)s.

Quick Hits:

• President Trump’s executive order directs the DOL to revisit its guidance on alternative assets in 401(k) plans and coordinate with other regulators to expand investment options.
• If the DOL issues regulations, enforcement risk from the agency will likely decrease, but plan sponsors may face more participant lawsuits over investment risk, fees, or performance.
• To limit liability, plan sponsors may want to consider ensuring alternative assets qualify for ERISA § 404(c) protection and maintain strong due diligence, disclosures, and monitoring.

For more information see Karen N. Brandon and Stephen M. Park “Executive Order Opens Door to Alternative Assets in 401(k)s: Key Considerations for Plan Fiduciaries,” The National Law Review, August 27, 2025.