DOL Rescinds 2021 Guidance Discouraging Alts in 401(k)s

The U.S. Department of Labor (DOL) has withdrawn its December 2021 Supplement to the June 2020 Information Letter on the use of private equity in defined contribution retirement plans, including 401(k)s.

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The move follows President Trump’s August 7 Executive Order, Democratizing Access to Alternative Assets for 401(k) Investors, which specifically called for the withdrawal. DOL Secretary Lori Chavez-DeRemer emphasized that plan fiduciaries should be empowered to determine the best investment options for participants.

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The IPA has long advocated for this action in meetings with regulators, raising many of the same concerns reflected in the agency’s rationale. The decision is an important step toward modernizing retirement plan options, expanding access to alternative investments, and improving long-term retirement security for all investors.

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