What does Preamble of Financial Freedom Act of 2025 do?

This bill, formally titled 'To prohibit the Secretary of Labor from constraining the range or type of investments that may be offered to participants and beneficiaries of individual retirement accounts who exercise control over the assets in such accounts,' aims to restrict the Secretary of Labor's authority. The bill would prevent the Secretary of Labor from limiting the types of investments available to individuals who control the assets in their individual retirement accounts.

What does SHORT TITLE. of Financial Freedom Act of 2025 do?

This bill is formally titled the Financial Freedom Act of 2025.

What does FIDUCIARY DUTIES WITH RESPECT TO PENSION PLAN INVESTMENTS. of Financial Freedom Act of 2025 do?

This section amends Section 404(a) of the Employee Retirement Income Security Act of 1974. It addresses fiduciary duties related to pension plan investments, specifically those with individual accounts where participants control assets. Fiduciaries are not required to select or prohibit specific investment types, as long as they provide participants with a broad range of investment alternatives and an opportunity to choose. Investments cannot be favored or disfavored except based on risk-return characteristics. If a fiduciary selects a self-directed brokerage window, the Secretary cannot constrain or prohibit the range of investments offered. Subsection (c) applies to self-directed brokerage windows. The selection of a self-directed brokerage window does not violate diversification or prudence requirements.

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Financial Freedom Act of 2025

Last updated: 4/1/2025 · Introduced: 4/1/2025

Author: Byron Donalds (R-FL)

TL;DR (AI)

This bill prevents the Secretary of Labor from restricting the types of investments available in individual retirement accounts where participants control their assets.
It amends ERISA to allow fiduciaries to offer a broad range of investment alternatives without favoring or disfavoring specific types, except based on risk-return characteristics.
The bill clarifies that offering a self-directed brokerage window does not violate fiduciary duties related to diversification or prudence.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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