IPA Advocates to Remove “Look-Through” Requirement for Defined Contribution Plans
The IPA continues to lead efforts to eliminate the SEC’s “look-through” requirement that restricts access to private market investments within defined contribution (DC) plans.
Under the 1941 rule, plan sponsors must determine whether each participant qualifies as an accredited investor or qualified purchaser, an administrative barrier that has long discouraged DC plan allocations to private market assets. While this requirement was previously removed for defined benefit (DB) plans, DC plans remain limited in their ability to access these opportunities.
The IPA has formally requested no-action relief from the SEC to remove this restriction and has engaged directly with Commission staff to advance this position. The Commission was receptive to the IPA’s recommendations, and we are optimistic that future clarification will allow DC plan sponsors to offer private market allocations without participant-level accreditation tests, improving retirement outcomes for millions of investors.
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