DOL Proposes Expanding 401(k) Options

The U.S. Department of Labor has proposed a rule clarifying how 401(k) plan sponsors may consider offering alternative investments, like crypto and commodities.

Agency officials said it could significantly broaden the range of investments available in 401(k) retirement plans.

The proposed rule explains steps that managers of 401(k) plans should take when considering alternative assets as part of their investment lineups.

DOL officials said it gives plan fiduciaries “maximum discretion and flexibility in selecting any particular investment as a designated investment alternative.”

It also establishes process‑based safe harbors that fiduciaries may use when selecting designated investment alternatives.

The proposal follows President Donald Trump’s executive order last August to “relieve the regulatory burdens and litigation risk” on 401(k) plan sponsors.

“Our goal is to deliver on President Trump’s promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity,” Labor Secretary Lori Chavez‑DeRemer said.

“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today.”

Chavez‑DeRemer said the department expects that greater diversity in investment options will drive innovation.