Adam Bergman

Founder, Tax Lawyer, Author

Alternative investments in retirement accounts spent 2026 moving from the margins of retirement planning to the center of the policy conversation. When I started IRA Financial, most people didn’t know they could own real estate or private equity in an IRA, and most plan sponsors wanted nothing to do with it. Going into 2027, the debate has shifted. People now accept that private markets, real estate, and digital assets belong in retirement accounts, and the argument is over how much access savers will get and on whose terms.

What Shaped 2026

• A White House push. Executive Order 14330, signed in August 2025, directed the Department of Labor to expand access to alternative assets in 401(k) plans.
• A proposed safe harbor. On March 30, 2026, the DOL proposed a rule that would protect plan fiduciaries who follow a prudent process when selecting investment options, including options with alternative assets. The DOL acknowledged that fiduciaries were already allowed to consider alternatives, but almost none had. I covered the details in my post on [what happens when private equity enters 401(k) plans](INSERT LINK).
• New fund products. Large asset managers, led by BlackRock, rolled out target date funds with private asset allocations. I walked through how those are built in my post on [adding alternative assets to target date funds](INSERT LINK).
• A political counterweight. On July 22, 2026, Rep. Richard Neal and Sen. Ron Wyden introduced a bill aimed at retirement balances above $10 million. It would bar new IRA contributions once combined IRA and defined contribution balances top that level and would require distributions from accounts above it. I discussed how that connects to the Peter Thiel story in my [Peter Thiel Roth IRA post](INSERT LINK).
• The SEC joins in. On September 30, 2026, the SEC proposed rule changes to modernize interval funds and make it easier for closed-end funds to offer multiple share classes. It also asked for public comment on letting individuals qualify as accredited investors by passing a FINRA exam or holding credentials like the CPA, CFA, or CFP.

What to Watch for Alternative Investments in Retirement Accounts in 2027

1. The final DOL rule. Comments on the proposal closed June 1, 2026. Analysts have said a final rule could arrive around the end of 2026, and the final text could differ from the proposal published in the Federal Register.
2. Whether employers actually adopt. The rule doesn’t require employers to add alternatives. Even with a safe harbor, employer comfort may depend on how courts treat plan investment lawsuits, including the Supreme Court’s pending decision in Anderson v. Intel.
3. How funds handle liquidity and valuation. The proposal doesn’t tell fund managers how to deal with these issues, so product design will carry much of the weight.
4. Whether access goes beyond packaged funds. Some commenters argue participants should be able to tailor their alternative exposure instead of only getting it inside an asset allocation fund.
5. The mega IRA bill. Watch whether the Neal-Wyden proposal advances or stalls the way an earlier version did in 2021. Since it was introduced by members of the minority party, I’d be surprised to see it move in 2027, but these ideas have a way of resurfacing in larger tax packages.
6. The SEC’s accredited investor changes. Many private placements are open only to accredited investors. If the SEC adds an exam or credential path, a larger pool of Self-Directed IRA investors could qualify for deals that are off-limits to them today.
7. Fees and disclosure. Critics want private funds held to the same transparency standards as public funds, and any final rule or product launch will be judged on that.

What It Means for Self-Directed Investors

Most of the 2026 headlines concern workplace plans, where employers and fund providers decide what’s offered. Investors with a Self-Directed IRA or Solo 401(k) already have what that debate is trying to create. They can choose alternative assets directly, including real estate, private placements, notes, precious metals, and digital assets, as long as they stay within the IRS prohibited transaction rules under Internal Revenue Code Section 4975.

What the policy shift does change is attention. As alternatives become a mainstream retirement topic, more savers will ask how to use them, and more of them will look at the account types built for direct ownership. That’s been our focus at IRA Financial since day one. We charge a flat annual fee, so your costs don’t climb as your alternative assets grow.

The practical advice for 2027 holds whichever way the rules break. Understand the fees, know how each asset is valued, plan for illiquidity, and keep good records for annual reporting, including the year-end fair market value your custodian needs for Form 5498.

Final Thoughts

I’ve been making the case for alternatives in retirement accounts for more than a decade, and 2026 was the year Washington started making it too. The DOL, the SEC, and the largest asset managers are all moving in the same direction, while Congress is debating how much tax-advantaged wealth any one person should be able to build. Some of these proposals will become final in 2027 and some won’t. If you want alternative assets in your retirement portfolio, you don’t need to wait for any of them, but you do need to understand what you own and follow the rules that already apply.

This content is for educational purposes only and does not constitute legal, tax, or investment advice. Consult a qualified professional before making any investment decisions.