The Department of Labor is considering new rules that would make it easier for 401(k) plan participants to invest in riskier alternative investments, including private equity funds. The proposed changes would build on guidance issued during the first Trump administration in 2020 that effectively gave approval for private equity investments in retirement accounts.
The regulatory shift could significantly expand the investment options available to millions of American workers saving for retirement through employer-sponsored plans. Currently, most 401(k) plans limit participants to traditional mutual funds, index funds, and other publicly traded securities.