U.S. Department of Labor Proposes 401(k) Rule for Alternative Assets

The U.S. Department of Labor has introduced a proposal concerning 401(k) plans, focusing on the inclusion of alternative assets in the retirement market, which currently holds $10.1 trillion in plan assets. According to NS3.AI, the proposal outlines guidelines for fiduciaries on assessing private equity, private credit, and digital assets. It also provides a safe harbor for employers who adhere to the specified process. Importantly, the rule does not mandate the addition of new investments nor does it endorse any particular asset class. A 60-day public comment period has commenced following the proposal's publication.