Trump’s 401(k) Plan: Who Might Benefit and Who Won’t

Since 2025, the Trump administration has introduced several new policies that impact 401(k) retirement plans. Some of these policies have come to fruition, while others are still under review. The most noticeable change is underway, with President Trump proposing to add alternative investments to 401(k) plans. Additionally, the Trump administration is expanding access to 401(k) plans for workers who do not currently have one.

Retirement plan policies and proposals don't always benefit the same groups of people. Several of these recent 401(k) changes have directly affected how many Americans save and invest for their future. Here are some examples.

A proposal to allow alternative investments in 401(k) plans

In August 2025, President Trump signed an executive order asking the SEC to review the possibility of allowing alternative investments in 401(k) plans. The Department of Labor issued a proposal outlining steps to ensure 401(k) providers meet their fiduciary duties when recommending alternative investments. The public comment period ended on June 1, 2026, and the proposal is now with the Department of Labor, where it's developing a final rule.

Who may benefit from alternative investments in 401(k) plans

Purchasing alternative investments within 401(k) plans would primarily benefit higher-income, risk-tolerant investors who want more diversity than index funds, for example.

These would be workers who have established 401(k) plans and are comfortable with the risk associated with more volatile investments. Because of the instability of cryptocurrency and the illiquidity of private equity, these investments may not be suitable for investors unfamiliar with these asset classes.

The people who may not benefit from these alternative assets within their plans

Many government officials, including Elizabeth Warren, have noted that adding alternative investments to 401(k)s may harm Americans, especially if they do not understand the risks of investing in cryptocurrency and private equity.

Even though employers may be required to inform employees of the potential risks of these investments, the responsibility for managing and growing a 401(k) account is still primarily on the employee.

Expanding access for workers who don't have a 401(k) plan

In his 2026 State of the Union address, President Trump said he planned to expand 401(k) plans so that all Americans can have access to tax-advantaged retirement savings accounts. 

As it turns out, this plan was already implemented in 2022 under President Biden. The Saver's Match gives low-income workers a government match for investing in an eligible retirement account. The plan is tied to the worker, not the employer, so employees can take the matching funds with them if they switch jobs.

Other important 401(k) changes based on the OBBB and the Secure 2.0 Act

President Trump's One Big Beautiful Bill (OBBB) created financial changes and challenges that impacted millions of Americans. For example, it expanded the 2017 Tax Cuts and Jobs Act and provided more of a runway for strategies like Roth conversions. At the same time, program cuts to Medicaid have driven up health care costs.

Additionally, Americans' retirement accounts may be impacted by the Secure 2.0 Act, which changed catch-up contribution rules. These changes may benefit some Americans in the short term, while others will only see the benefits in retirement.

Based on the current changes to 401(k) plans thus far, and pending legislation, more 401(k) changes may be ahead.

How to stay up to date on upcoming 401(k) policies

To stay up to date on 401(k) policies, make sure to open any emails or letters from your employer about your 401(k) account. Your employer should notify you if there are any changes to your plan or the assets you can purchase within your 401(k). If you want to ask about fees or the overall cost of your 401(k) plan, speak to your human resources department.

If you're not sure whether or not you're on track for retirement or are unsure of which assets to purchase, you can also work with a financial planner.

Bottom line

In order to lower your stress in retirement, it's important to make an investment plan, whether on your own or with a financial planner. Additionally, continue reading the news online and from your employer about potential changes to your 401(k) retirement plan so you stay up to date with any policies that may impact you in the future.

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