Labor Secretary Lori Chavez-DeRemer says a proposed rule to allow alternative assets in 401(k) plans will better reflect the current investment landscape. Under the rule, assets like cryptocurrency, real estate and private-market assets could be considered for investment into 401(k) retirement plans. File Photo by Francis Chung/UPI | License Photo
The U.S. Department of Labor proposed a new rule on Monday that would allow people to invest alternative assets like cryptocurrency into their 401(k) plans.
The department seeks to open 401(k) retirement investment up to assets like cryptocurrency, real estate and private-market assets.
“Our goal is to deliver on President [Donald] Trump’s promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity,” U.S. Secretary of Labor Lori Chavez-DeRemer said in a statement. “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today.”
The rule calls for fiduciaries to consider the performance, fees, liquidity, valuation and complexity of assets when determining their consideration for investment into a 401(k) plan.
There are already no restrictions on including alternative assets like cryptocurrency, real estate or private-market assets, though fiduciaries have treaded lightly on them out of fear that those assets may be challenged legally.
The Labor Department’s proposed rule would create a “set of process-based safe harbors” for plan fiduciaries, legally shielding them when they implement alternative assets.
The rule is open to a 60-day public comment period and further review before becoming finalized.
This week in Washington
President Donald Trump stands with U.S. Secretary of Agriculture Brooke Rollins during an event celebrating farmers on the South Lawn of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo
