Private Equity and Retirement Accounts

[qfri29]

A few days ago, I learned that there is a regulation that the federal government is proposing that would allow private equity companies to access funds in retirement accounts. Public comment on the proposed regulation ends today, June 1st at 11:59 PM.. If you have a retirement account and don't want private equity companies to access the funds in the account, then you might want to provide public comments. Here is the link to the Federal Register to provide public comment. Please share this with other people you may know.

[GailL1]

@qfri29 

I do not see your link but if this is the one that i think it is then I do not think your description is correct.  It is more about widening the investment realm with prudence on the side of the fiduciary.  IOW, with careful analyisis of a company and holdings - this might open the door for cryptocurrency investing within retirement account.

This synopsis is from the DOL- Employee Benefits Security Administration, Department of Labor.

https://www.dol.gov/newsroom/releases/ebsa/ebsa20260330 

The proposed regulation explains the steps that managers of 401(k) plans should take when considering alternative assets as a component in their investment lineups and establishes a set of process-based safe harbors for plan fiduciaries to use when selecting designated investment alternatives.

The proposed regulation reflects long-standing retirement law principles. Prudence under ERISA is grounded in process and plan fiduciaries are given maximum discretion and flexibility in selecting any particular investment as a designated investment alternative. 

Under the proposed rule, when selecting investment alternatives, plan fiduciaries would need to objectively, thoroughly, and analytically consider, and make determinations on factors including performance, fees, liquidity, valuation, performance benchmarks, and complexity. 

While managers of defined contribution plans have always had the authority to consider alternative assets, historically, almost none have done so. In 2022, the previous Administration further stifled these investments through a rescinded compliance release that warned fiduciaries about including cryptocurrency options in 401(k) plans. The guidance deviated from the Employee Retirement Income Security Act’s requirements and marked a departure from the department’s decades-long approach to fiduciary investment decisions.

The link to the Federal Register 

https://www.federalregister.gov/documents/2026/03/31/2026-06178/fiduciary-duties-in-selecting-design...