How to Review Your 401(k) Plan Funds and Fees — ProPublica
ProPublica — 2026-08-27 04:00:00 — www.propublica.org
Trump Pushes for Riskier 401(k) Investments, Proposes Rules Limiting Worker Protections
President Donald Trump has expressed support for encouraging 401(k) retirement plans to invest more heavily in private equity, real estate, and cryptocurrency—investment options that experts widely consider complex and risky. To facilitate this shift, the Department of Labor under Trump has proposed regulatory changes that would make it more difficult for employees to hold companies accountable for how they manage retirement plans.
Proposed Rule Changes Favor Employers
Currently, employers are legally required to act in the best interests of their employees when selecting investment options for 401(k) plans. However, under the Trump-backed proposal, companies that follow a prescribed process in choosing investments would receive the benefit of the doubt in court, making it harder for workers to sue over mismanagement of their retirement accounts.
The Department of Labor has publicly stated that these changes will “democratize access to alternative investments in 401(k) plans” and “lower litigation risks” for employers who are acting with good judgment. Critics, however, warn that these rules could “gut protections for retirement savers” and prioritize maximizing returns over balancing risk, as noted by Monique Morrissey of the Economic Policy Institute.
Potential Risks and Concerns
The push to expand access to private equity and cryptocurrency in retirement plans comes despite survey data showing that most Americans do not consider such options important for their retirement savings. Experts caution that these alternative investments can carry higher fees and greater risks compared to traditional options like index funds.
The proposed changes would also shift more responsibility onto employees to monitor their retirement plans, even though many workers lack the expertise to evaluate complex investment products or spot excessive fees. This could result in workers unknowingly paying higher costs or taking on more risk than they realize.
Conclusion
President Trump’s initiative to broaden 401(k) investment options to include riskier assets like private equity and cryptocurrency is accompanied by regulatory proposals that would make it harder for employees to challenge poor plan management in court. While the Department of Labor frames these changes as expanding choice and reducing employer liability, critics argue that the move could undermine critical protections for retirement savers and expose workers to greater financial risk. As these rules move toward finalization, the debate underscores the importance of transparency, oversight, and safeguarding workers’ long-term financial security.
Source: https://www.propublica.org/article/401k-retirement-plan-fees-funds