Treasury Secretary Scott Bessent Disclosed His Entire 401(k) Is In A Single T. Rowe Price Fund. Here’s Who T. Rowe Price Says It’s Built For
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Treasury Secretary Scott Bessent’s annual financial disclosure report, filed with the U.S. Office of Government Ethics, shows one holding in his Key Square Group LP 401(k) plan: the T. Rowe Price (NASDAQ:TROW | TROW Price Prediction) Retirement 2025 Fund I Class (ticker TREHX). The report values it at $250,001 to $500,000. He signed the report June 9, 2026, and OGE certified it on Sept. 22, 2026. The filing adds: “I will continue to participate in this defined contribution plan.”
That account is a small part of his finances. ProPublica’s collection of the disclosure puts his total reported assets at $228M to $450M+. Per ProPublica, his spouse’s IRA holds cash at U.S. Bank, MFS Massachusetts Investors Trust Class A shares and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), with that ETF position valued at $100K to $250K.
The 2025 target date on Bessent’s fund has already passed, and the fund keeps changing its mix.
A 2025 Fund Keeps Shifting Long After 2025
A target-date fund moves money from stocks to bonds on a fixed schedule called a glide path. All of T. Rowe Price’s Retirement Funds share the same prospectus wording on this, including the Retirement 2010 Fund summary prospectus dated Aug. 1, 2026: “At the target date, the glide path provides for a neutral allocation to equity of 55%.”
The move toward bonds continues after that date: “The fund’s overall exposure to equity will continue to decline until approximately 30 years after its target date, when its neutral allocations to equity and fixed income will remain unchanged.” T. Rowe Price’s Retirement Funds brochure puts the final mix at 30% stocks and 70% bonds.
“Neutral” means a starting point. The managers can hold more or less stock than that. The Retirement 2010 Fund is well past its date and shows where the path leads. Its neutral equity allocation was 44% as of Aug. 1, 2026.
| Glide Path Stage (Source: T. Rowe Price) | Neutral Stock Share |
|---|---|
| At the target date | 55% |
| Retirement 2010 Fund, well past its date (Aug. 1, 2026) | 44% |
| Final mix, about 30 years after the target date | 30% stocks, 70% bonds |
Who T. Rowe Price Says This Fund Is Really For
T. Rowe Price answers that directly: “The fund is designed for an investor who retired at or about the target date and who plans to withdraw the value of the account in the fund gradually after retirement.”
The series assumes you retire at age 65, and the prospectus points out the catch: “However, if an investor retires earlier or later than age 65, the fund may not be an appropriate investment even if the investor retires on or near the fund’s target date.”
The prospectus also sets limits: “The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income.” It warns, “You may experience losses, including losses near, at, or after the target retirement date,” and “There is no guarantee that the fund will provide adequate income at and through your retirement.”
In the company’s words, the goal is to “focus on supporting an income stream over a long-term postretirement withdrawal horizon.” In practice, a 2025 fund expects you to withdraw slowly for decades while its mix keeps getting more conservative.
Five Questions to Ask Before Your Next Withdrawal
- When did you retire compared with age 65? If you stopped working at 60 or plan to work until 70, T. Rowe Price says the fund may not fit, even if the year in the fund’s name matches your retirement year.
- Will you withdraw gradually or all at once? The series is built for steady withdrawals. Taking the whole balance out at once uses the fund in a way its prospectus says it wasn’t designed for.
- Does the mix fit your whole household? A 55% stock starting point that drops toward 30% may be too conservative if a pension covers your bills. It may be too risky if this account is your only buffer. Count every account, including your spouse’s index funds.
- What does your share class cost? The same target-date fund often comes in several share classes with different fees. For comparison, SPY’s expense ratio is about 0.09%.
- How will withdrawals affect your taxes? Traditional 401(k) withdrawals are taxed as ordinary income. This year, the Medicare income surcharge (IRMAA) starts above $109,000 for single filers and $218,000 for joint filers. At the first tier, it adds $81 a month to your Part B premium, based on your earlier income. The same withdrawals can make up to 85% of your Social Security benefits taxable.
If your withdrawals plus Social Security will land near that first IRMAA threshold, consider a fee-only fiduciary or CPA. They can help you plan a withdrawal schedule before the income that sets your future Medicare premiums is locked in (we covered IRMAA and the other premium traps retirees walk into in a free Medicare guide).
Contact [email protected] for any questions or corrections.
AJ spent 10 years writing about financial markets at The Motley Fool. His coverage centers on technology stocks and the broader macroeconomic trends, from interest rates to geopolitics, that shape where markets are headed next. AJ is drawn to the stories where big-picture economics and individual companies collide.
