Department of Labor proposes rule opening 401(k) plans to alternative assets

11 articles · Updated · Money Talks News · Apr 27

The March 30 proposal follows Donald Trump's August 2025 executive order and would shield employers from lawsuits if they add private equity, hedge funds and cryptocurrencies.
The change could widen access to higher-fee, higher-risk and less liquid investments, including through default target-date funds that many workers enter automatically.
Supporters call it democratized access, but critics warn it could steer part of the $10.1tn US 401(k) market toward products that may underperform low-cost index funds after fees.

Your 401(k) may soon hold private equity by default. Are you prepared for the higher fees and risks that come with it?

Is the new rule democratizing wealth for workers or creating a trillion-dollar opportunity for Wall Street's most exclusive funds?