Private Equity Investments in 401(k)s

It’s recently been reported that the Trump administration is considering issuing an executive order that would allow 401(k) plans to invest in private equity and other non-traditional investments. The order would direct the Department of Labor and the SEC to identify ways to integrate private equity investments into the 401(k) market. As of now, at least one large retirement plan provider has partnered with several investment firms to offer private equity investments within collective investment trusts.

We asked two professors and authors of ThinkAdvisor’s Tax Facts with opposing political viewpoints to share their opinions about Trump’s proposals to issue an executive ordering opening the ERISA retirement market to private equity investments.

Below is a summary of the debate that ensued between the two professors.