The 401(k) Crypto Rule Is in Its Final White House Review. Could Retirement Money Start Flowing Into Bitcoin in 2027?

The Labor Department’s proposed 401(k) crypto rule, which could make it easier to include Bitcoin (CRYPTO:BTC) in retirement plans, has been under White House review since September 28, 2026. According to Reginfo.gov, the rule, identified as RIN 1210-AC38, is pending review at the Office of Information and Regulatory Affairs (OIRA), the White House office that reviews significant regulations before they are published.

OIRA Clearance Is the Last Step Before a Final Rule

The OIRA review is the last hurdle before the rule can be published in the Federal Register. White House guidance tells agencies to expect a review of up to 90 days, so a decision could come around the end of 2026.

The rule traces back to an executive order issued in August 2025, which told the Labor Department to clarify its guidance on cryptocurrencies and private markets in 401(k) plans. The Labor Department had already rescinded Compliance Assistance Release No. 2022-01 in May 2025, a notice that told fiduciaries to use “extreme care” before adding crypto options.

The proposed rule came out on March 31, 2026, and Democratic lawmakers pushed back in June, calling it “harmful to American workers and counter to statute.”

What Labor’s Crypto Rule Can and Can’t Do for Your Plan

The proposed rule introduces a “safe harbor” provision, which provides legal protection for employers. An analysis of the rule suggests that if an employer carefully evaluates performance, fees, liquidity, and other factors, it will be presumed to have made prudent choices under ERISA, the federal law governing workplace retirement plans.

While this protection reduces employers’ risk of lawsuits, they still control the investment menu. Anyone with discretionary control over plan assets is considered a fiduciary under 26 U.S.C. § 4975(e)(3)(A), so a plan committee must approve any Bitcoin fund before savers can buy it.

The most likely routes for Bitcoin are self-directed brokerage windows or small allocations within target-date funds. Target-date funds are widely used, and 84% of Vanguard participants held them in 2024. In a Goldman Sachs (NYSE:GS | GS Price Prediction) survey, 45% of plan sponsors said they’d consider adding private-market strategies, the other asset class covered by the executive order, to these funds.

For instance, a saver who moved $10,000 of their 401(k) into Bitcoin at its $126,080 all-time high in October 2025 would now hold about $6,000, with Bitcoin priced at $75,662 on November 8.

Bitcoin gains inside a traditional 401(k) are taxed as ordinary income when withdrawn, so savers miss out on the lower long-term capital gains rate available in a taxable account. Larger withdrawals could also raise the tax on Social Security benefits and trigger Medicare IRMAA surcharges, higher premiums for higher-income retirees, two years later. Our guide to Medicare’s hidden bills covers the IRMAA thresholds.

How $10.8 Trillion in 401(k) Money Compares With Bitcoin ETFs

As of June 30, 2026, the Investment Company Institute reported $10.8 trillion in 401(k) plans. A mere 1% allocation to Bitcoin would come to about $108 billion, more than the $96 billion held by all U.S. spot Bitcoin ETFs on November 6. It’s also about 84 times the $1.28 billion in net outflows those ETFs posted in their latest reported week.

However, much of that money belongs to wealthier households. Federal Reserve data shows that households in the 90th to 99th wealth percentiles held 44% of all defined-contribution balances in the second quarter of 2026.

Large sums of money typically move slowly. Spot Bitcoin ETFs began trading in January 2024, but Morgan Stanley (NYSE:MS) only let its advisers offer them in August 2024, as the first major Wall Street bank to do so, and only to clients with at least $1.5 million. It also kept them out of retirement accounts. With plan committees on set schedules and recordkeepers still building crypto options, 401(k) adoption could take even longer.

Could Bitcoin Be Part of Your 401(k) in 2027?

A select group of plans may introduce Bitcoin exposure in 2027, but most savers likely won’t see it on their menu that year. With Bitcoin down 13.6% so far in 2026, more cautious committees might wait for more data before moving forward. For those interested in early access, it’s worth checking whether a plan offers a self-directed brokerage window, since that’s where any early Bitcoin options would most likely appear.

If OIRA clears the rule early in 2027 and it withstands legal challenges, money could start flowing into Bitcoin through brokerage windows that year. If progress stalls, small allocations within target-date funds may not show up until 2028 or later. Either way, Bitcoin’s 40% drop from its peak reminds us to keep any crypto position small enough that it won’t delay retirement plans.

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