Compliance Stuff

On March 30, 2026, the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issued a notice of proposed rulemaking (NPRM) designed to reduce the regulatory risk if permitted investment options in 401(k) retirement plans include nontraditional investments such as private equity and cryptocurrency. 00:00 11:02 Quick Hits The DOL proposed a six-factor safe harbor to meet a fiduciary’s duty of prudence when selecting designated investment alternatives under participant-directed defined contribution plans. The proposed regulation does not apply to brokerage windows or self-directed brokerage accounts under defined contribution plans.  This proposal follows President Trump’s executive order aimed at increasing access to alternative assets and reversing earlier Biden-era guidance that discouraged such investments due to risk concerns.  By clarifying the fiduciary process affording discretion to plan fiduciaries to select investments, the DOL hopes the c...

On August 7, 2025, President Donald Trump released an executive order to attempt to permit alternative assets among 401(k) investment options. It marks a shift away from Biden-era  guidance  that discouraged alternative assets in 401(k)s. Quick Hits President Trump’s executive order directs the DOL to revisit its guidance on alternative assets in 401(k) plans and coordinate with other regulators to expand investment options. If the DOL issues regulations, enforcement risk from the agency will likely decrease, but plan sponsors may face more participant lawsuits over investment risk, fees, or performance. To limit liability, plan sponsors may want to consider ensuring alternative assets qualify for ERISA § 404(c) protection and maintain strong due diligence, disclosures, and monitoring. Background Executive Order 14330  aims to expand 401(k) investment options by allowing access to alternative assets, such as private equity, real estate, and digital assets. The order dire...