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New rules proposed for 401(k)s and what it could mean for retirement savings

The Department of Labor proposed new rules for how fiduciaries select investments for your 401(k). We’re here to break down what this could mean for your retirement savings.

By Mindy Yu, CIMA®

Updated Jun. 17, 2026 |

New rules proposed for 401(k)s and what it could mean for retirement savings Jun 17, 2026 10:49:41 AM The Department of Labor proposed new rules for how fiduciaries select investments for your 401(k). We’re here to break down what this could mean for your retirement savings. There's been a lot of buzz lately about new rules for 401(k) plans. If you're wondering what it all means for your retirement account, we’re here to break things down. What does this mean for 401(k) plans? In March, the U.S. Department of Labor (DOL) proposed a new rule implementing the Trump administration’s executive order “to democratize access to alternative assets in 401(k) plans.” Instead of focusing on a specific investment type, the new rule would change how investments get evaluated, not which investments your plan must offer. Think of it less as "your 401(k) is about to look wildly different" and more as "the rulebook for how investments get picked just got clearer." The proposed rule lays out how fiduciaries should choose investments, across six metrics: performance, fees, liquidity, valuation, benchmarking, and complexity. What could this mean for your investment options? Here's the good news: Betterment’s investment process is built around the same factors the DOL identifies. We evaluate risk-adjusted performance, prioritize low-cost ETFs with transparent valuations and readily available benchmarks, stress-test portfolio strategies, and automatically monitor portfolios and rebalance as participants approach their investment time horizons. We apply this disciplined process to every investment decision we make. Betterment will continue to carefully consider all types of investments, rigorously select and monitor options as a fiduciary, while preserving the flexibility participants desire. That same disciplined process also shapes what we don't offer. Weighed against factors like fees, liquidity, and complexity, we will continue not to offer alternative investments such as crypto and private assets. We’ll continue to regularly review investments with appropriate oversight and governance to meet our due diligence and fiduciary duty in selecting investments suitable for participants' long-term investment objectives. What happens next The proposed rule is open for comment until June 1, 2026, with a final rule expected later in the year. Clearer rules are good for everyone: They give fiduciaries the confidence to act, encourage competition among service providers, and ultimately mean better options and lower costs for participants saving for retirement. As always, we will continue to monitor ongoing developments and keep you informed as the landscape evolves.

Key takeaways about the proposed legislation

The DOL proposed new rules for how 401(k) investments get chosen—not what gets chosen.
With the new rules, fiduciaries would have to weigh six factors: performance, fees, liquidity, valuation, benchmarking, and complexity.
Betterment's investment process already meets the proposed standard.
Betterment will continue to keep crypto and private assets out of its plans.
The rule isn't final yet—public comment closes June 1, 2026, with a final version expected later this year.

The Department of Labor proposed new rules for how fiduciaries select investments for your 401(k). We’re here to break down what this could mean for your retirement savings. There's been a lot of buzz lately about new rules for 401(k) plans. If you're wondering what it all means for your retirement account, we’re here to break things down.

What does this mean for 401(k) plans?

In March, the U.S. Department of Labor (DOL) proposed a new rule implementing the Trump administration’s executive order “to democratize access to alternative assets in 401(k) plans.”

Instead of focusing on a specific investment type, the new rule would change how investments get evaluated, not which investments your plan must offer. Think of it less as "your 401(k) is about to look wildly different" and more as "the rulebook for how investments get picked just got clearer."

The proposed rule lays out how fiduciaries should choose investments, across six metrics: performance, fees, liquidity, valuation, benchmarking, and complexity.

What could this mean for your investment options?

Here's the good news: Betterment’s investment process is built around the same factors the DOL identifies. We evaluate risk-adjusted performance, prioritize low-cost ETFs with transparent valuations and readily available benchmarks, stress-test portfolio strategies, and automatically monitor portfolios and rebalance as participants approach their investment time horizons. We apply this disciplined process to every investment decision we make.

Betterment will continue to carefully consider all types of investments, rigorously select and monitor options as a fiduciary, while preserving the flexibility participants desire.

That same disciplined process also shapes what we don't offer. Weighed against factors like fees, liquidity, and complexity, we will continue not to offer alternative investments such as crypto and private assets. We’ll continue to regularly review investments with appropriate oversight and governance to meet our due diligence and fiduciary duty in selecting investments suitable for participants' long-term investment objectives.

What happens next

The proposed rule is open for comment until June 1, 2026, with a final rule expected later in the year. Clearer rules are good for everyone: They give fiduciaries the confidence to act, encourage competition among service providers, and ultimately mean better options and lower costs for participants saving for retirement. As always, we will continue to monitor ongoing developments and keep you informed as the landscape evolves.