Coming Soon: DOL’s Proposed Rules Facilitating Alternative Assets in 401(k) Plans
•January 22, 2026
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Why It Matters
The rules could dramatically broaden retirement‑plan investment options, driving new asset‑allocation strategies and reshaping the fiduciary landscape for plan sponsors.
Key Takeaways
- •DOL submitted alternative‑asset rule proposal Jan 13 2026.
- •Executive Order mandates safe‑harbor guidance for ERISA fiduciaries.
- •OMB review deadline likely accelerated to meet Feb 3 2026.
- •Rule could permit digital assets, private equity in 401(k)s.
- •Industry expects public comment period soon.
Pulse Analysis
The Department of Labor’s latest proposal marks a pivotal shift in retirement‑plan policy, building on an August 2025 executive order that urged regulators to lower barriers to alternative investments. By targeting digital assets, private equity, private credit and real estate, the DOL aims to modernize the investment universe for 401(k) participants, aligning retirement savings with the evolving preferences of a digitally savvy workforce. This move reflects broader trends where institutional investors increasingly allocate capital to non‑traditional assets in search of higher returns and diversification.
For plan sponsors and fiduciaries, the anticipated safe‑harbor provisions could provide clearer legal protection when offering alternative‑asset options. Historically, ERISA’s strict fiduciary standards have limited exposure to assets perceived as risky or ill‑iquid, due to litigation concerns. The proposed guidance is expected to delineate acceptable due‑diligence processes, valuation methods and disclosure requirements, thereby reducing uncertainty and encouraging more proactive asset‑allocation decisions. As a result, financial advisers may develop new suite products tailored to retirement plans, potentially expanding the market for alternative‑asset managers.
Timing is critical: the DOL must issue final guidance by February 3, 2026, and the OMB’s typical 90‑day review could be compressed to meet that deadline. Stakeholders anticipate a brief public‑comment window, prompting industry groups to mobilize quickly. If adopted, the rules could catalyze a wave of alternative‑asset offerings across the defined‑contribution landscape, influencing fund flows, fee structures and competitive dynamics among plan providers. Monitoring the rule‑making process will be essential for investors seeking to capitalize on this regulatory opening.
Coming Soon: DOL’s Proposed Rules Facilitating Alternative Assets in 401(k) Plans
Article
On January 13, 2026, the Department of Labor (the “DOL”) submitted to the White House Office of Management and Budget (“OMB”) proposed rules (the “Proposed Rules”) relating to the inclusion of alternative assets (such as digital assets, private equity, private credit and real estate) within 401(k) and other defined contribution plans (collectively, “DC Plans”).
As outlined in more detail here, on August 7, 2025, President Trump signed an executive order (the “Executive Order”) which directed the DOL and the Securities and Exchange Commission to relieve regulatory burdens and litigation risk that have impeded investments in alternative assets by DC Plan participants. In particular, the Executive Order directed the DOL to reexamine its existing guidance regarding an ERISA fiduciary’s duties in connection with making available to DC Plan participants an asset allocation fund that includes investments in alternative assets and, as it deems appropriate and consistent with applicable law, to propose new guidance (including safe harbors) that would curb ERISA litigation that constrains ERISA fiduciaries’ ability to apply their best judgment in allowing alternative investments for DC Plan participants. While the DOL has not yet indicated the contents of the Proposed Rules, we expect the Proposed Rules to be consistent with the directives of the Executive Order.
OMB typically has 90 days to review proposed rules, but the Executive Order directed the DOL to issue guidance within 180 days (i.e., no later than February 3, 2026). As such, it would not be surprising if OMB fast‑tracks its review of the Proposed Rules and if the DOL releases them for public comment soon.
When the Proposed Rules become available, we will follow up with another post outlining the material terms thereof and will otherwise keep you appraised of any developments in this area.
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