401(k) Exemptions

401(k) Exemptions refer to regulatory allowances that exclude certain 401(k) retirement plan activities, investments, or fiduciary actions from specific legal or compliance requirements.  These exemptions—often issued by the U.S. Department of Labor (DOL) under ERISA—permit plan sponsors, asset managers, or advisers to engage in transactions that might otherwise be prohibited, such as using affiliated investment products or receiving certain forms of compensation.Their purpose is to increase flexibility, lower costs, expand investment options, and improve plan efficiency, while still requiring safeguards like disclosure, impartial conduct standards, and acting in participants’ best interests.In practice, 401(k) exemptions shape how funds are structured, how advice is delivered, and how institutional managers operate within retirement plans.