DOL Unveils Proposed Rule to Remove Restrictions on Alternative Investments in 401(k) Plans
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...