Retirement Investment Choice Act
- Bill Number
- H.R. 5748
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-10-14: Referred to the Committee on Education and Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-12-09T18:17:05Z
AI-Generated Summary
Summary of H.R. 5748: Retirement Investment Choice Act
Purpose
This bill seeks to convert Executive Order 14330 into permanent federal law. The executive order focuses on expanding investment opportunities in 401(k) retirement plans—a type of employer-sponsored savings account—by making "alternative assets" (such as private equity, real estate, or commodities, which are typically available only to wealthy investors) more accessible to everyday participants. The goal is to "democratize" these options, allowing broader participation to potentially improve retirement savings outcomes.
Key Provisions
- Codification of Executive Order: The bill declares Executive Order 14330 (published in the Federal Register on May 14, 2024, at 90 Fed. Reg. 38921) to have the full force and effect of law, embedding its directives into the U.S. Code.
- No additional details or amendments to the order are specified; the bill solely aims to preserve and enforce the order's existing content.
Significant Changes to Existing Law
- From Executive Action to Statute: Executive orders can be altered or revoked by future presidents, but codification makes the policy statutory, requiring congressional action to change it. This shifts oversight from the executive branch to Congress.
- Expansion of 401(k) Investments: Under current rules (governed by the Employee Retirement Income Security Act of 1974, or ERISA), 401(k) plans are largely limited to traditional assets like stocks, bonds, and mutual funds. The order, if codified, would direct federal agencies to ease restrictions, enabling plans to include alternative assets without the stringent requirements that currently limit access.
Potential Impacts
- On Citizens: Retirement savers could gain access to a wider range of investments, potentially leading to higher returns and more diversified portfolios. However, alternative assets often carry higher risks, fees, and volatility, which might affect long-term savings security for non-expert investors.
- On Government Agencies: The Department of Labor (DOL), which oversees 401(k) regulations, and the Securities and Exchange Commission (SEC) would be required to align their rules with the codified order, possibly involving new guidance, rulemaking, or enforcement priorities. This could increase administrative workloads.
- On International Relations: No direct impacts, as the bill focuses on domestic retirement policy without addressing foreign investments or trade.
Main Stakeholders
- 401(k) Participants and Retirees: Everyday workers and savers who rely on these plans for retirement, potentially benefiting from or facing risks from new investment choices.
- Employers and Plan Sponsors: Companies offering 401(k) plans, which may need to update offerings and fiduciary responsibilities.
- Financial Institutions: Investment firms, asset managers, and brokers that provide alternative assets, who could see increased business opportunities.
- Regulators: DOL and SEC, tasked with implementing and monitoring compliance to protect plan participants.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Codification enhances legal stability for the policy, reducing vulnerability to executive whim, but it may invite challenges if alternative assets conflict with ERISA's fiduciary standards (which require investments to prioritize participant interests). Courts could review whether expanded access adequately safeguards against undue risks.
- Constitutional Implications: None significant; the bill operates within Congress's authority under the Commerce Clause to regulate retirement plans and interstate commerce.
- Political Implications: As a short, targeted bill introduced by Republican representatives and referred to committees on education/workforce and financial services, it reflects bipartisan potential in retirement policy but could spark debate over investor protection versus market innovation. Enactment would signal congressional support for executive initiatives on economic democratization.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Rep. Donalds, Byron [R-FL-19], Rep. Davidson, Warren [R-OH-8], Rep. Stutzman, Marlin A. [R-IN-3], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Moore, Barry [R-AL-1]
Recent Actions
- 2025-10-14: Referred to the Committee on Education and Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-10-14: Referred to the Committee on Education and Workforce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-10-14: Introduced in House
- 2025-10-14: Introduced in House
Bill Versions
- Retirement Investment Choice Act — issued 2025-10-14 — PDF (2 pages)