- White House review completed for a Labor Department rule affecting 401(k) investments
- Potential inclusion of crypto and private equity in retirement plans under ERISA
- $10 trillion 401(k) market could see expanded investment options
- Rule classified as “economically significant” by OIRA
- No fixed deadline for finalization of the proposal
Regulatory Review Completed
The White House’s Office of Information and Regulatory Affairs (OIRA) has concluded its review of a proposed Labor Department rule that could reshape investment options in the $10 trillion 401(k) market. The review was completed on March 24, clearing the proposal for formal release in the coming weeks.
The rule has been designated as “economically significant,” indicating that it is expected to have a substantial impact on the economy or exceed $200 million in annual effects.
Proposed Changes to Retirement Investments
If finalized, the rule would amend fiduciary guidance for retirement plans governed by the Employee Retirement Income Security Act (ERISA). The changes could allow plan sponsors to include alternative assets such as cryptocurrency and private equity among designated investment options.
The proposal follows an executive order signed last year by President Donald Trump, which directed the Labor Department to facilitate access to alternative investments in participant-directed defined-contribution plans.
The order also instructed the Securities and Exchange Commission, the Treasury Secretary, and other federal agencies to explore ways to expand access to digital assets and other alternatives within retirement plans.
Market Context and Growth Trends
The regulatory development comes amid continued growth in retirement savings. According to Fidelity Investments, the average 401(k) balance reached $144,400 in the third quarter of 2025, marking a 9% increase from the previous year. Additionally, the average individual retirement account (IRA) balance rose 7% year-over-year to $137,902 during the same period. The proposed rule does not have a legal deadline for finalization, according to the OIRA filing.
