Trump Set to Expand 401(k) Power to the People, Not the Bureaucrats [WATCH]

President Donald Trump is expected to sign an executive order that would pave the way for broader access to private-market investment options within retirement accounts, according to a report from The Wall Street Journal, citing individuals familiar with the matter.

The order, currently under review by the administration, would direct the U.S. Department of Labor and the Securities and Exchange Commission (SEC) to issue regulatory guidance allowing employers and retirement plan administrators to include private assets in 401(k) plans.

BREAKING: The trump administration is finalizing an executive order to allow 401(k) retirement savings plans to invest in private equity, per Bloomberg.

— unusual_whales (@unusual_whales) July 16, 2025

Trump’s Sovereign Wealth Fund: What Could It Mean For Your Money?

While the details of the order have not yet been finalized, sources indicate that the guidance would represent a significant policy shift designed to expand retirement investment choices for American workers.

Private-market investments—also referred to as private assets—include instruments such as private equity, venture capital, hedge funds, and real estate.

These assets are not traded on public markets and are typically associated with higher levels of risk and potentially greater returns when compared to traditional public investments like stocks and bonds.

This Could Be the Most Important Video Gun Owners Watch All Year

Bryan Corbett, president and CEO of the Managed Funds Association (MFA), which represents firms involved in alternative asset management, praised the reported action.

Speaking to Reuters, Corbett stated, “Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for a successful retirement.”

During President Trump’s first term, the Labor Department issued a letter in 2020 signaling that retirement plan managers could consider including private equity investments within certain retirement products, such as target-date funds, provided the risks and fees were carefully assessed.

The policy was viewed as a step toward offering broader investment flexibility in retirement planning.

However, in 2021, under the Biden-Harris administration, the Department of Labor reversed course.

At that time, the agency announced that it did “not endorse or recommend such investments,” effectively discouraging the inclusion of private equity and similar options in retirement portfolios.

With President Trump now moving to reinstate and expand the policy framework, several financial firms have already begun developing and marketing retirement products that incorporate private assets.

According to The Wall Street Journal, Apollo Global Management and State Street have introduced a target-date fund featuring a private-markets component.

Meanwhile, Blue Owl Capital has announced a partnership with Voya Financial to offer new 401(k) investment options that include private assets.

If finalized, the executive order would mark a continuation of the Trump administration’s focus on deregulation and financial market access, while reversing positions taken by the prior administration.

The guidance from the Labor Department and SEC would provide the regulatory clarity needed for employers and plan managers to adopt private-market options in workplace retirement plans.

No formal announcement has been made by the White House regarding the executive order’s signing or timeline for release.

The Department of Labor and SEC have not issued public statements on the anticipated regulatory guidance.

Additional developments are expected as the Trump administration moves forward with the initiative and financial institutions prepare to adjust offerings in response to the expected policy changes.