Potential implications for plan sponsors and participants

Author: Christopher Jarmush

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On August 7, 2025, President Trump signed Executive Order 14330, titled "Democratizing Access to Alternative Assets for 401(k) Investors." This order directs the Department of Labor (DOL) to re-examine guidance on fiduciary duties related to alternative asset investments in ERISA-governed defined contribution (DC) plans, potentially providing average American workers greater access to private market and alternative asset classes previously reserved for institutional investors and high-net-worth individuals.

The order defines alternative assets broadly to include private equity, private credit, real estate, digital assets held in actively managed vehicles, commodities, infrastructure investments and lifetime income strategies. This represents a significant policy reversal from the previous administration's more cautious stance and signals what could be a new chapter for DC plan investment menus.

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