Labor Department Sends 401(k) Investment Rule to OMB

The Department of Labor has submitted its investment safe harbor rule for 401(k) plans to the White House for final review.

Updated on Nov. 6, 2026 in Retirement Planning

Labor Department Sends 401(k) Investment Rule to OMB

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The Department of Labor submitted its investment safe harbor rule for 401(k) plans to the White House Office of Management and Budget for final review on November 5. The proposed rule gives ERISA fiduciaries criteria for evaluating and selecting alternative investments.

Why it matters

The rule would shape how retirement plan fiduciaries evaluate private and alternative investments within defined contribution plans. It follows an August 2025 executive order from President Donald Trump directing federal regulators to consider changes encouraging such investments.

The proposal's public comment period lasted 60 days and ended in June, before the rule was submitted to the Office of Management and Budget on November 5. Final OMB approval and the rule's final text remain unannounced.

The players

Department of Labor

The federal agency responsible for enforcing ERISA and overseeing private-sector retirement plan standards in the United States.

Donald Trump

The current President of the United States, whose August 2025 executive order directed regulators to encourage private investments in defined contribution plans.

Elizabeth Warren

The Democratic senator from Massachusetts who has been a vocal critic of retirement plans investing in private assets.

The details

The Department of Labor publicly released the proposed investment safe harbor rule in March, and the Office of Management and Budget had approved the proposal before its release. The House Committee on Rules also plans to consider the Retirement Fairness for Charities and Educational Institutions Act of 2025, which would let 403(b) plans invest in collective investment trusts.

February 2025: Representatives Frank Lucas and Bill Foster sponsor the 403(b) collective investment trust bill.
March 2026: The Department of Labor publicly releases its proposed investment safe harbor rule.
June 2026: The 60-day public comment period ends and the proposal enters rulemaking.
November 5, 2026: The Department of Labor submits the rule to the Office of Management and Budget for review.

Market Dynamics

The rule implements the August 2025 executive order from President Donald Trump directing regulators to encourage private investments in defined contribution plans. It translates that policy direction into concrete fiduciary criteria for alternative investments.

If finalized, the rule would give plan fiduciaries clearer criteria for including alternative investments in 401(k) lineups. Participants could see new investment options in their workplace retirement accounts depending on how plan sponsors respond.

The takeaway

Workplace retirement savers should watch how fiduciaries handle alternative investments as this rule moves toward finalization. Reviewing plan fund options and fees remains the most practical step for participants.