Labor Department to widen 401(k) options by welcoming alternative investments
TL;DR Summary
The Department of Labor’s Employee Benefits Security Administration proposed a rule to broaden 401(k) investment options by creating process-based safe harbors that guide fiduciaries to objectively evaluate alternative assets—assessing factors like performance, fees, liquidity, valuation, benchmarks, and complexity—while staying within ERISA prudence. Aimed at more than 90 million Americans, the rule signals a neutral, rule-based approach to diversify retirement lineups and follows related executive orders and prior guidance shifts.
- US Department of Labor proposes landmark rule to democratize access to alternative investments in 401(k) plans U.S. Department of Labor (.gov)
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- 401(k) alternative asset rule proposed by Labor Department cnbc.com
- Labor Department proposes including alternative assets in retirement accounts as private equity stocks jump Yahoo Finance
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