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Labor Department Rescinds Guidance to Expand Alternative Asset Access in 401(k)s

The rescission triggers a 180-day review of ERISA fiduciary rules that could pave the way for expanded retirement plan access to private markets

U.S. President Donald Trump listens to questions from reporters in the Oval Office on August 07, 2025 in Washington, DC. Coins in a jar.

Overview

  • The DOL formally rescinded its December 2021 Supplemental Private Equity Statement on August 12 under President Trump’s August 7 executive order.
  • The rescission starts a statutory 180-day deadline for the Labor Department to reexamine ERISA fiduciary duties and propose regulations or safe harbors by February 3, 2026.
  • The SEC and Treasury have been instructed to consult on parallel rulemaking that may revise securities regulations and guidance to facilitate participant investments in private equity, private credit, real estate and digital assets.
  • Asset managers and private-market firms are developing wrappers, interval funds and target-date allocations in anticipation of potential retirement inflows if new rules clear notice-and-comment processes.
  • Consumer advocates warn that illiquidity, opaque valuations, elevated fees and heightened litigation risks for plan sponsors could jeopardize saver protections without robust guardrails.