WASHINGTON — A proposed rule from the U-S Department of Labor could soon expand what Americans can invest in through their retirement plans.
The Labor Department announced Monday it is considering changes that would make it easier for 401(k) plans to include alternative assets like private equity, real estate, and cryptocurrency.
Officials say the proposal would not require employers to offer those options, but would give plan managers more flexibility and legal clarity when deciding whether to include them.
Proponents suggest the move could offer workers a wider variety of investments and potentially higher returns. Conversely, opponents caution that these assets may involve greater risk, higher fees, and more complexity than standard retirement options such as index funds.
Michigan Congressman Tim Walberg praised the move, saying it would help modernize retirement planning and give workers more tools to grow their savings.
Walberg said in a statement, “Workers should be able to retire with sustainable and comfortable lifesavings, not endless worry and instability… I applaud the Trump administration for modernizing retirement plans to reflect the wider range of ways Americans can invest and grow their savings.”