Trump Administration Expands 401(k) Investment Options

New DOL rules aim to open private market investments to ordinary savers

Published on Feb. 9, 2026

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The Trump administration is taking action to expand investment options for Americans' 401(k) retirement accounts, allowing access to private market investments that were previously off-limits. The Department of Labor is drafting new rules to provide 'safe harbor' protections for employers who offer these expanded choices, shielding them from predatory class-action lawsuits that have stifled innovation in the retirement savings space.

Why it matters

This move is seen as a major shift in how the government views the financial capabilities of American workers. Rather than treating citizens like they can't handle their own finances, the Trump administration is embracing the concept of 'your money, your choice' when it comes to retirement savings. Proponents argue this levels the playing field that has long been tilted toward Wall Street elites with access to private market investments.

The details

Under the forthcoming Department of Labor rules, employers will be able to offer private equity, private credit, real estate, and other alternative investments as part of 401(k) plans without fear of costly lawsuits. This marks a departure from the status quo, where such options have been largely restricted to institutional investors and the connected class. The new regulations aim to provide a clear legal framework for plan sponsors, encouraging them to expand the investment menu for ordinary savers.

  • President Trump signed an executive order last summer directing the Department of Labor to take action.
  • The DOL announced the forthcoming rule changes at a Securities Industry and Financial Markets Association event earlier this year.

The players

President Trump

The Trump administration has made this a priority, seeking to 'level the playing field' and give American workers more choice in how they invest for retirement.

Keith Sonderling

The Deputy Secretary of the Department of Labor, who announced the forthcoming rule changes at a financial industry event.

Elizabeth Warren

The Senator and her allies have fought to maintain the status quo, where private market investments have been largely off-limits to ordinary 401(k) savers.

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What’s next

The Department of Labor is currently drafting the formal rules to implement the new policy, which will then go through a public comment period before being finalized.

The takeaway

This move by the Trump administration represents a fundamental shift in how the government views the financial capabilities of American workers. By opening up private market investments to 401(k) savers, it aims to level a playing field that has long been tilted toward Wall Street elites, empowering ordinary citizens to build wealth for their retirement.