DOL Proposes New 401(k) Rule to Guide Alternative Investment Choices

26 articles · Updated · Investor's Business Daily · Apr 17

The US Department of Labor has proposed a new rule clarifying fiduciary duties for selecting alternative investments in 401(k) plans.
The rule introduces a six-factor safe harbor framework, offering plan fiduciaries a presumption of prudence if they follow a documented process.
This move could broaden access to private equity, real estate, and digital assets, but has sparked debate over risks and potential legal challenges.

If public pensions are reducing private equity, why are 401(k) plans now being encouraged to add these complex assets?

Will this rule boost worker retirement savings or primarily enrich asset managers through higher fees on complex products?

How will the Supreme Court's upcoming ruling on investment benchmarks affect the viability of this new fiduciary framework?

How can illiquid private funds be realistically adapted for the daily trading needs of millions of individual retirement savers?

Will this new 'safe harbor' truly shield employers from lawsuits or just shift the legal battleground to their decision-making process?