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    Home /  Insights /  Memos and Newsletters /  Memo
    S&C Memos

    U.S. Department of Labor Proposes Rule to Facilitate Alternative Investments in 401(k) Plans

    Process-Based Safe Harbor Would Provide Clarity on How ERISA Fiduciaries May Satisfy Their Duty of Prudence when Selecting Designated Investment Alternatives, Potentially Expanding Investment Opportunities for Retirement Savers and Plan Sponsors and Capital Access for Alternative Asset Managers

    April 6, 2026 | min read |
    • Related Practices

    On March 30, 2026, the U.S. Department of Labor proposed a rule under the Employee Retirement Income Security Act of 1974 (ERISA) that would establish a safe harbor for ERISA fiduciaries in their selection of designated investment alternatives for participant-directed individual account plans.

    The proposed rule is intended to provide retirement savers with greater access to alternative assets such as private market investments, digital assets, infrastructure and real estate, as directed by an Executive Order issued by the Trump Administration in August 2025. In furtherance of this goal, the proposed rule sets out a pathway for an ERISA fiduciary to qualify for a legal presumption that its selection process satisfies the duty of prudence under ERISA, alleviating some of the regulatory uncertainty and litigation risk that has discouraged ERISA fiduciaries from including alternative assets as investment options in the vast majority of defined contribution plans.

    Our publication summarizes the proposed rule, as well as key takeaways and implications.

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