Executive Order 14330: Democratizing Access to Alternative Assets for 401(k) Investors

What does Executive Order 14330 do?

The text directs Labor to review and revise ERISA guidance, and Labor to propose fiduciary clarification and safe harbors.

Reading the operative provisions of Executive Order 14330

EO 14330 directed federal agencies to make it easier for retirement-plan fiduciaries to consider alternative assets in participant-directed investment options. The order addresses assets such as private equity, real estate and digital assets when included in a diversified fund. Its instructions appear in the Federal Register text of EO 14330. The order did not require any employer plan to offer those investments or guarantee their performance.

ERISA fiduciaries must act prudently and in the interests of plan participants. The order sought agency guidance about how fiduciaries could evaluate alternative assets, including disclosures, fees, liquidity and valuation. A presidential directive cannot remove ERISA’s duties or make an investment prudent solely because it is included in a diversified product. Plan sponsors remain responsible for selecting investments that fit the plan and its participants.

EO 14330 was later revoked, so it no longer supplies current policy direction. Its historical effect should be distinguished from any guidance or rule that agencies adopted while it was in force; those may require separate action to change. Participants should consult their plan’s current investment lineup and disclosures rather than infer that alternatives are available. The order’s policy debate concerned how regulators should assess risk, but each plan’s fiduciary obligations continue under statute.