Alternative Investments May Soon Be Available in Retirement Plans
The U.S. Department of Labor (DOL) has proposed new regulations that would allow millions of retirement account holders to access alternative investments such as private assets and real estate through their 401(k)s. The proposal, which received over 40,000 public comments in March 2026, could be finalized by fall once the DOL reviews feedback using AI tools for efficiency. Experts suggest that while large retirement plans have long used private assets, this rule change would extend access to smaller and less sophisticated defined contribution plans. Mike Dullaghan of Franklin Templeton emphasized that alts should not serve as standalone options but rather be integrated into professionally managed portfolios or target date funds. Tripp Braillard from Clarion Partners noted broad industry support for the inclusion of private assets, despite opposition from some advisors and lawmakers who cite increased risk. Braillard countered concerns by highlighting how real estate and other alts have been safely used in institutional retirement pools like sovereign wealth funds and endowments for decades. The DOL's final decision is expected to shape a broader shift toward diversification within defined contribution plans.
Topics: 401(k)s alternative investments Department of Labor (DOL) private assets