SEC Urged to Expand 401(k) Investment Options to Include Alternatives
House Financial Services Committee Chairman French Hill has urged the Securities and Exchange Commission (SEC) to swiftly act on President Trump's executive order. The order aims to give 401(k) holders access to alternative assets for better returns and diversification.
Hill's letter pressed the SEC to consider revising its accredited investor rules. Currently, these rules limit access to private company investments for defined-contribution plans like 401(k)s. The letter also requested a review of bipartisan legislation that could liberalize these rules for 401(k) investments.
The executive order, issued by President Trump, calls on the SEC and Department of Labor (DOL) to facilitate access to alternative assets for 401(k) participants. It directs them to consider revisions to regulations and guidance regarding accredited investor status. Hill, an advocate for maximum choice in 401(k) and defined-contribution plan investments for over a decade, has pushed for these changes.
The SEC is urged to act promptly on the executive order to expand investment options for 401(k) holders. More details on the issue can be found at retiresafer.org. If implemented, these changes could provide retirees with returns based on their individual investments, including alternative assets like private companies and cryptocurrencies.
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