A Department of Labor proposal allows 401(k) holders to invest in private equity, real estate, and digital assets starting in 2027.
401(k) plans will soon include alternative assets like private equity, private credit, real estate, and digital funds following a Department of Labor safe harbor rule proposed on March 30, 2026. The change stems from Executive Order 14330, signed in August 2025, aiming to expand access beyond accredited investors.
The median 401(k) balance of $44,115 may face higher fees and liquidity risks compared to accounts averaging $167,970. The rule could be finalized by year-end, with implementation expected in 2027, reshaping retirement investment options.
The shift marks a departure from decades of restrictions, allowing workplace retirement accounts to diversify into historically exclusive asset classes.