On March 10, 2022, the U.S. Department of Labor (DOL) issued Compliance Assistance Release No. 2022-01 cautioning plan fiduciaries to exercise extreme care before considering adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants.
According to the DOL, these investments present significant risks and challenges to participants’ retirement accounts for a variety of reasons listed in the guidance. The DOL is advising plan fiduciaries that oversee or allow such investments to expect to be questioned about how they can justify their actions with their duties of prudence and loyalty in light of these risks.
For questions, contact Thrive PEO - Oklahoma's best Professional Employer Organization at: thrive@thrivepeo.com or (918) 794-2200.
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