401(k)s may use alternative investments: Labor Department proposal
A sign is displayed at the Department of Labor Frances Perkins Building in Washington in June 2025.
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The Department of Labor has proposed a rule regarding how plan sponsors and fiduciaries can include alternative assets in 401(k) retirement accounts.
offer It comes in response to President Donald Trump’s executive order issued in August directing the Department of Labor and the Securities and Exchange Commission to facilitate expanded access to alternative assets in 401(k)s. Alternative investments are a broad category that includes real estate, cryptocurrencies, and private market assets, among others.
Although 401(k) plans are not currently prohibited from including such assets, fear of lawsuits challenging investment decisions has kept most plan sponsors on the sidelines.
“This proposed rule would demonstrate how plans can consider products that better reflect today’s investment climate,” said Secretary of Labor Lori Chavez-DeRemer.
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