Department of Labor Proposal Would Shield 401(k) Advisors From Litigation Over Alternative Assets

401(k) plan participants will have the final choice on which assets to invest in. The Department of Labor proposed offering safe-harbor protections to advisors who follow a six-step process to ensure advisors act as fiduciaries. These protections would lessen litigation related to 401(k) plan advice, a change from ERISA-related litigation which required stricter fiduciary rules. This proposal follows a request from the Trump Administration to research adding alternative investments, including cryptocurrency, private credit, and private equity, to traditional 401(k) plans.