{"id":558108,"date":"2026-04-01T11:37:30","date_gmt":"2026-04-01T11:37:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/558108\/"},"modified":"2026-04-01T11:37:30","modified_gmt":"2026-04-01T11:37:30","slug":"trump-administration-eyes-401k-rule-change-for-private-credit-fix","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/558108\/","title":{"rendered":"Trump administration eyes 401(k) rule change for private credit fix"},"content":{"rendered":"

The Trump administration is offering private credit a way out of its problems. <\/p>\n

Opening up 401(k) accounts to alternative assets, a move the Labor Department advanced with new employer rules<\/a> on Monday, would help solve the crisis now facing investment firms whose retail shareholders are running for the exits.<\/p>\n

Alternative assets are \u201cnot a carrot that you pull out of the ground every day to see how it grows,\u201d KKR\u2019s Alisa Wood told Semafor<\/a>. The problem is that funds marketed to retail investors allow just that, offering them the chance to take out a sliver of their money on a quarterly or monthly basis. It\u2019s almost designed to malfunction when nerves are high. \u201cThe least satisfying, but most accurate, thing to be said about private credit right now is that it\u2019s working exactly as it\u2019s supposed to,\u201d we wrote last week.<\/a><\/p>\n

Retirement accounts are harder to cash out of, because doing so brings steep taxes. That would give individual investors exposure to alternative assets and would protect them from their instincts to panic at the worst moments. Historically less than 2% of Americans tapped their 401(k) for emergency cash every year. That number has risen, but those redemptions could be more easily met by selling stocks and bonds that are expected to remain the bulk of 401(k) assets. <\/p>\n

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