Labor Dept Pushes Smarter Picks for 401(k) Alternatives
Published Date: 3/31/2026
Proposed Rule
Summary
The Department of Labor is proposing new rules to help those in charge of 401(k) plans pick smart investment options, including some alternative assets. This makes it clearer how to act responsibly and safely when choosing these investments, aiming to give more people access to different ways to grow their retirement money. Plan managers and investors should weigh in by June 1, 2026, as these changes could impact how retirement funds are handled and grown.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Safe Harbor for 401(k) Investment Picks
If you manage or choose investments for a participant-directed 401(k) plan, the Department of Labor proposes a rule that clarifies the fiduciary duty of prudence and offers a safe harbor for selecting designated investment alternatives, including funds that contain alternative assets. The rule implements Executive Order 14330 (Aug. 7, 2025) and the Department is taking comments through June 1, 2026.
Legal Deference and Reduced Litigation Risk
If you act as a plan fiduciary and follow the proposed safe-harbor process, the Department says courts and others should give deference and a presumption of prudence to your investment-selection decisions, which can reduce litigation risk when defending those choices. The proposal cites Skidmore deference and directs commenters to respond by June 1, 2026.
Guidance Applies to All Plan Options
The Department makes clear the proposed rule applies to the selection of any designated investment alternative on a plan's menu — not only asset allocation funds or funds that include alternative assets — so fiduciaries get neutral guidance covering all investment types. The proposal also notes the Department rescinded its December 21, 2021 supplemental statement on private equity (rescinded Aug. 12, 2025).
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Key Dates
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