Last Thursday, the Trump Administration issued an Executive Order seeking to encourage sponsors of 401(k) plans and other defined contribution plans to offer a wide range of “alternative assets.” This Goodwin alert notes:

On August 7, 2025, the Trump Administration issued a long-awaited executive order (the “Executive Order”) to encourage sponsors of 401(k) and other participant-directed defined-contribution plans that are governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (collectively, “DC plans”) to consider offering access to alternative investments, such as private equity, private credit, real estate, funds investing in digital assets, commodities, project financing, and lifetime income investments.1 Specifically, the Executive Order directs the Department of Labor (the “DOL”) to take the following steps:

– By February 3, 2026, reexamine the DOL’s guidance on a fiduciary’s duties regarding alternative asset investments in DC plans.

– By February 3, 2026, clarify the DOL’s position on alternative assets and the appropriate fiduciary process associated with offering asset allocation funds containing investments in alternative assets. Relatedly, the DOL must prioritize actions that “may curb ERISA litigation that constrains fiduciaries’ ability to apply their best judgment in offering opportunities to relevant plan participants.”

– Consult with the Secretary of the Treasury, the Securities and Exchange Commission (the “SEC”) and other federal regulators to determine whether parallel regulatory changes should be made by those agencies to give effect to the purpose of the Executive Order.

The Executive Order also directs the SEC to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance.

While the ultimate impact of the Executive Order will depend on the DOL and the SEC’s specific actions to implement it, the Order should add momentum to efforts to offer DC plan participants access to private market investment strategies.

– Dave Lynn