401(k) plans

The Trump administration is advocating for increased inclusion of annuities in 401(k) plans, but the article suggests this could have mixed implications for workers.

Top Democratic lawmakers are urging the Department of Labor to withdraw a proposal that would allow retirement plans to offer investments in cryptocurrency, private equity, and other alternative assets, arguing that this could expose workers' savings to greater financial risks and higher fees.

Congressional Democrats are opposing a US Department of Labor proposal to allow 401(k) investments to include cryptocurrency, private credit, and private equity. The lawmakers argue the change would expose workers to riskier and more complex investments, citing potential legal challenges and financial risks for retirement savings.

Congressional Democrats oppose a US Department of Labor proposal to allow 401(k) investments in cryptocurrency, private credit, and private equity, citing increased financial risk for workers. A letter from Senators Bernie Sanders, Elizabeth Warren, and House member Bobby Scott argues the change would expose $14.2tn in retirement savings to volatile assets and likely face legal challenges.

The Trump administration is proposing rules to allow alternative assets like private equity and crypto in 401(k) plans, focusing on a rules-based framework rather than litigation. The Department of Labor's rule emphasizes 'prudent' investment processes but does not claim these assets will improve performance. Public comments will shape the final rule, with concerns about risks and lobbying influencing potential changes.