DoL proposal expands 401(k) menus to include private equity and more
The U.S. Department of Labor unveiled a proposed rule giving 401(k) plan fiduciaries maximum discretion and flexibility to offer private equity and other so-called alternative investments (like crypto and commodities) as designated options. The rule emphasizes a neutral, prudent-evaluation process and makes clear managers can select any investment without the previous “picking winners and losers.” While it could make it easier for employers to add alternatives, they are not required to do so and must still assess performance, fees, liquidity, and other factors. Industry and political reactions are mixed (Trump supports it; Warren opposes), and even if finalized, changes may take years to affect plan menus.
- Employers that want to offer 401(k) participants access to private equity get new rule CNN
- Private-Credit Wobbles Could Prove Perilous for Trump The New York Times
- Labor Dept. Rules Clear the Way for 401(k)s to Add Private Assets Barron's
- 401(k) alternative asset rule proposed by Labor Department CNBC
- US Department of Labor proposes landmark rule to democratize access to alternative investments in 401(k) plans U.S. Department of Labor (.gov)
Reading Insights
0
5
307 min
vs 308 min read
100%
61,445 → 106 words
Want the full story? Read the original article
Read on CNN