Department of Labor proposes rule for including alternative assets in 401(k)s

The proposal is in response to President Donald Trump’s executive order, released in August, which directed the Labor Department 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 already not prohibited from including such assets, fears of lawsuits challenging their investment decisions have kept most plan sponsors on the sidelines.

“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today,” said Labor Secretary Lori Chavez-DeRemer.

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