Retirement Retirement Planning

401(k) Rules Are Changing Under Trump - And Pre-Retirees May Not Like What's Happening

Everyone needs to know about this if they want to retire one day.

By Catherine Collins , Edited by Laura Hohenstein

Updated Nov. 11, 2026

Add Us On Google

In August 2025, President Trump released an executive order asking the DOL, SEC, and Treasury to investigate allowing alternative investments in retirement plans. Alternative investments include assets like private equity and private credit, which are investments that have typically not been available to all investors in the past. Alternative assets also include cryptocurrency and real estate.

Several critics, including government officials and financial professionals, have warned that allowing these types of investments in retirement plans could put Americans' retirement savings at risk because they're more volatile. Here's more information about these upcoming changes and what it means for retirement accounts.

Set up eligible direct deposit - pocket up to $400

Set up an eligible direct deposit with SoFi Checking and Savings and you could earn a bonus of $50 or $400.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. Make the switch, set up eligible direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.

Why people are switching: This account earns up to an insane 4.40% APY² Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on savings for up to six months on new accounts (3.30% APY standard + 1.10% APY boost; terms apply) on top of that $50 or $400 bonus.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. That's way better than the measly 0.38% APY (as of 10/19/26)³ Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26. national average savings accounts offer.

No monthly fees and no surprises. Open your account and earn up to a $400 bonus

A background of President Trump's proposed 401(k) rule

In Executive Order 14330, President Trump instructed several government agencies to investigate adding alternative investments to 401(k) plans. He explained in this order that the goal was to ensure all Americans had access to investment opportunities that had previously only been available to a select few.

After the Executive Order, agencies responded, and several critics commented as well.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

The Department of Labor responded with a six-step plan

In response to the Executive Order as well as some of the feedback from financial professionals, the Department of Labor released a six-step plan that 401(k) plan managers have to follow when recommending alternative assets.

Plan managers must act as fiduciaries, that is, allowing products that are only in the best interests of plan participants. Since alternative assets are non-traditional, unlike typical stocks, bonds, mutual funds, and index funds, this six-step plan is set to protect consumers.

Plan managers may be protected with safe harbor rules

One concern for many plan managers is potential litigation that comes from allowing alternative investments in plans. So, the Department of Labor established safe harbor rules. Essentially, as long as fiduciaries follow the six-step plan mentioned above, they may have more legal protections.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up to 25% off your AARP membership, making it just $15 the first year with auto-renewal.

What critics are saying about alternative investments in 401(k) plans

As mentioned, many people are unhappy about the prospect of alternative investments, like cryptocurrency, being available in Americans' 401(k) plans.

One of them is Senator Elizabeth Warren, who wrote a letter to the SEC outlining her concerns. Others have pointed to the high fees of these investments, the volatility, and the risk that inexperienced investors may have if they don't realize what they are investing in.

What are the next steps in these potential 401(k) changes?

The proposal to allow alternative investments is not finalized yet. One of the more recent changes is that in September, the SEC proposed changes with respect to investment management fees. If it passes, this proposal may allow some plan managers to get extra income if investments perform well. It's possible that performance-based fees could make some types of alternative assets more expensive.

As of right now, this proposal is still in talks, and there have been no definitive decisions yet.

How recent court cases could impact these proposals

One case that's currently in front of the Supreme Court is Anderson v. Intel. This case is relevant because Intel employees are suing, saying that their retirement plans had underperforming investments in alternative assets like private equity. What the Supreme Court decides could impact the future of lawsuits over underperforming investments in 401(k) plans.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Your employer may or may not offer these in the future

As mentioned, these policies are still underway, and alternative assets are not currently widely available in 401(k) plans. Even once they are, your employer may or may not offer these in the future. That's because each employer has their own fiduciary in charge of their plan, and some may feel alternative assets are useful to add, while others may not.

Employees are responsible for choosing their own investments, and you don't have to pick every fund your employer offers. Taking the time to review investments, check their performance, and understand how much each type charges in fees can help you determine which assets are best for you.

Where to go if you have 401(k) investment questions

If you're not sure whether you're invested in the best assets for you or where alternative assets fit your risk tolerance and investment profile, you can make an appointment with a financial planner. They can review your current holdings, ensure you understand investment fees, and make recommendations on your portfolio.

Bottom line

Some people, including several lawmakers, think that including alternative assets in retirement plans is a financial mistake. However, the Trump Administration says they want to include these in an effort to ensure Americans have equal access to potentially better investment opportunities.

Currently, alternative assets are not widely available in 401(k) plans, but that could change as the proposal passes different benchmarks to eventually get fully approved.

More from FinanceBuzz: