President Trump’s Executive Order Brings Private Assets to Employer-Sponsored 401(k) Plans

The Trump Administration has signed an executive order that could potentially allow your employer-sponsored retirement plans to invest in private assets, expanding opportunities for investment and diversification for everyday retirement savers. However, while availability of these asset types may be new to some plans, this is not a new concept. Millions of investors have been using self-directed IRAs to invest in private assets for years.

What does this executive order do?

This executive order, signed by President Trump on August 7, 2025, directs the Department of Labor and the Securities and Exchange Commission to reassess regulatory guidelines and create a path for employers and plan administrators to allow private assets in their sponsored 401(k) retirement plans.

Such private assets include private equity, real estate, cryptocurrency, venture capital, and hedge funds that aren’t traded on public exchanges. While some consider private assets to be higher risk, they may also potentially yield higher rewards, making them an option for investors wanting to take more control of their retirement with alternative assets.

[Related: What Real Estate Investors, Retirement Savers Should Know About the “One Big Beautiful Bill”]

How is this different than a self-directed IRA?

While expanding 401(k) investment options creates more similarities between self-directed IRAs (SDIRAs) and employer-sponsored 401(k) plans, there are significant differences.

Employers aren’t legally required to offer 401(k) plans, and some employer plans may also differ in the types of private assets they offer, meaning that investors could see different options at different jobs and possibly even lose the ability to continue investing in the private assets they did at a previous job. Eligibility requirements may also be different for each company’s plan.

On the other hand, self-directed IRA companies like Equity Trust offer a wider range of retirement plans, like the IRA (not tied to an employer) and the Solo 401(k), especially for self-employed individuals and small business owners. Even if an investor is eligible for an employer-sponsored 401(k), a self-directed account provides additional freedom in choosing specific assets, especially if their employer’s plan does not have the offerings that they want to invest in.

Next Steps

If you don’t want to wait for your employer plan to begin offering private assets, or you want to invest in assets not offered by your employer, Schedule a call with an IRA Counselor or click here to learn more about WealthBridge, an online portal that connects your retirement account to third-party private-investment platforms—today.