03.30.26

DOL Proposes 401(k) Alternative Asset Rule

by: Sarah Agostino; Stephanie Dhue; Greg Iacurci

The U.S. Department of Labor (DOL) has proposed a rule allowing 401(k) plans to more easily include alternative assets. The move follows an executive order by President Trump aimed at expanding investment options. Supporters say alternatives could improve diversification and returns, but critics warn they are complex, costly and risky for typical investors. Although 401(k) plans are already not prohibited from including such assets, fears of lawsuits challenging their investment decisions have kept most plan sponsors on the sidelines. The proposal includes a “safe harbor” to protect plan sponsors from lawsuits and outlines evaluation criteria.

Read the full article on CNBC