**401(k) Riskier Assets Proposal**
Key Questions
What is the DOL's proposed safe harbor rule for 401(k)s?
It provides fiduciaries protection when selecting alternative investments like PE, real estate, or crypto in 401(k) plans or TDFs, reducing litigation risks.
How does the rule address fiduciary concerns with alts?
The rule offers a safe harbor against prior risks like defaults, liquidity issues, and high fees, easing inclusion of riskier assets.
What are the impacts on near-retirees under this proposal?
Near-retirees face rollover decisions to IRAs or avoiding cash-outs upon job exits, as alts may lack liquidity for decumulation.
Why is private credit liquidity a concern in 401(k)s?
Private credit's push into mainstream 401(k)s meets liquidity challenges, potentially stranding funds during market stress or withdrawals.
How does the proposal challenge traditional 401(k) focus?
It shifts from accumulation to including alts, countering underspending narratives but raising risks for default TDF options.
DOL safe harbor rule for fiduciaries selecting alts like PE/real estate/crypto in 401(k)/TDFs, reducing litigation fears vs prior risks/defaults/liquidity/high fees; impacts near-retiree rollovers/decum/job exits (roll to IRA/avoid cash-outs); underspending narrative challenges accumulation focus.