US EditionTrump Reportedly Plans Order to Open 401(k)s to Private Markets: What It Means for Your Retirement
UNITED STATES, JUL 15 – The executive order aims to ease legal barriers for including private equity and other alternative assets in 401(k) plans, tapping into $12.5 trillion in retirement savings, officials said.
- Reported Tuesday, the Wall Street Journal said plans for an executive order that would direct the Labor Department and the SEC to issue guidance on private assets in 401s.
- Top officials in Washington have been evaluating how to ease legal barriers that kept alternatives out of defined-contribution plans, after a 2020 Labor Department letter allowed cautious private equity inclusion.
- Industry proponents say opening 401 plans to private markets broadens savers' choices and boosts long-term returns, with Bryan Corbett saying it provides needed diversification and firms already preparing related products.
- Market preparations show large managers such as Apollo Global Management and Blackstone stand to tap workers' retirement savings, and firms like Apollo and State Street have launched target-date funds with private-markets components.
- Long term, everyday savers could benefit from opportunities previously reserved for institutional investors, as the move seeks to expand access to private equity in 401 plans.
24 Articles
24 Articles
It's time to open the 401(k) to private markets
America’s $12.4 trillion defined contribution (DC) retirement savings system, centered around workplace 401(k) plans, accounts for nearly half of global retirement finance assets. For the past four decades, the system has served tens of millions of working Americans, steadily rolling out innovations like automatic enrollment, automatic contribution escalation, target date funds, and managed accounts. But notwithstanding these innovations, U.S. D…
Trump Eyes Big Move to Reshape 401(k) Options - Here's What It Means for Your Retirement
President Trump is preparing an executive order that would allow more 401(k) retirement plans to include private-market investments, potentially changing how millions of Americans save for retirement. Key Facts: The upcoming order would direct the Labor Department and SEC to issue new guidance for including private assets in 401(k)s. Private assets include investments like private equity, real estate, hedge funds, and venture capital. The Biden…
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