On August 7, 2025, the White House issued an Executive Order directing the Department of Labor (DOL)—in coordination with the SEC and Treasury—to review and potentially expand guidance around the use of alternative assets in 401(k) plans.

The move has generated significant industry buzz. While the headline makes it sound like these investments will be available to plan participants immediately, the reality is more measured—and much slower.

What the Executive Order Does (and Doesn’t Do)

The order instructs regulators to evaluate how fiduciaries can prudently offer diversified investment options that include asset classes such as private equity, private credit, real estate, commodities, or other “alternative” strategies.