Kiplinger’s May 2026 Tax Letter: The 401(k) Is Getting Access to Alternative Assets for the First Time
Key takeaways
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- Kiplinger s May 2026 Tax Letter highlights a shift in retirement plan policy that has been building since last summer.
- The shift traces back to Executive Order 14330, "Democratizing Access to Alternative Assets for 401(k) Investors," signed in August 2025.
Kiplinger’s May 2026 Tax Letter: The 401(k) Is Getting Access to Alternative Assets for the First Time David Beren Mon, May 18, 2026 at 3:16 AM GMT+7 7 min read Quick Read 401(k) plans are now permitted to hold private equity, private credit, real estate, infrastructure, and digital asset funds following Executive Order 14330 signed in August 2025, with the Department of Labor issuing a proposed safe harbor rule on March 30, 2026 that could be finalized by year-end and implemented in 2027.
The shift opens alternative investments historically reserved for wealthy accredited investors to average workers, but the typical 401(k) holder with a $44,115 median balance faces higher fees, lock-up periods, and liquidity risks that hit much harder than for high-balance savers with $167,970 average accounts.
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