Advocacy Backs EBSA Rule Opening 401(k)s to Alternative Assets Under 1974 ERISA
Updated
Updated · advocacy.sba.gov · Jun 9
Advocacy Backs EBSA Rule Opening 401(k)s to Alternative Assets Under 1974 ERISA
1 articles · Updated · advocacy.sba.gov · Jun 9
Summary
March 31's EBSA proposal won support from Advocacy, which said clearer ERISA fiduciary guidance could let participant-directed 401(k) plans offer more alternative assets.
The rule is meant to clarify how fiduciaries can prudently select options such as private equity, private credit, real estate and commodities while still meeting their duties under the 1974 law.
Advocacy said the change could especially help small-business retirement plans, where high minimums, long lockups and regulatory limits have kept alternative assets largely out of reach.
Its comment letter also urged EBSA to add clarity so any expanded fiduciary requirements do not deter small-business investment or impose unnecessary compliance costs.
The proposal also advances Executive Order 14330, which aims to broaden 401(k) investor access to alternative assets and potentially improve diversification, income stability and capital formation.