Story perspectives

Labor Department Proposes Rule to Expand 401(k) Investments

4/3/2026

Summary

Story summary

The U.S. Department of Labor proposed a rule to expand access to alternative investments in 401(k) plans, benefiting over 90 million Americans.
The proposal would require fiduciaries to evaluate alternative assets, including private equity, and provide safe harbors from liability.
Supporters, including Americans for Tax Reform, say the rule aligns with U.S. President Donald Trump’s executive order and would diversify retirement portfolios.

History

Historical Context

The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to establish minimum standards for private pension plans, following significant pension crises, such as the Studebaker Corporation's 1963 bankruptcy, which left many workers without benefits. ERISA mandates fiduciary responsibilities for plan managers, impacting over 90 million Americans today as the U.S. Department of Labor proposes expanding investment options for retirement portfolios.

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Story summary

The U.S. Department of Labor proposed a rule to expand access to alternative investments in 401(k) plans, benefiting over 90 million Americans.
The proposal would require fiduciaries to evaluate alternative assets, including private equity, and provide safe harbors from liability.
Supporters, including Americans for Tax Reform, say the rule aligns with U.S. President Donald Trump’s executive order and would diversify retirement portfolios.

1 / 2