HR 2544119th CongressIntroduced

Financial Freedom Act of 2025

Introduced: Oct 29, 2025

Financial ServicesLabor & Employment

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Financial Freedom Act of 2025 amends ERISA to prohibit the Labor Secretary from restricting investment options in self-directed retirement accounts, ensuring participants have unrestricted access to diverse investment alternatives through brokerage windows without regulatory constraints on asset types.

Key Points

1The bill explicitly prevents the Department of Labor from issuing regulations that constrain or prohibit specific investment types within self-directed brokerage windows of retirement plans.
2It clarifies that plan fiduciaries cannot be forced to favor or disfavor investments based on non-risk factors when offering a broad range of alternatives to participants.
3Offering self-directed brokerage windows does not violate ERISA's diversification and prudence requirements, even if participants make high-risk investment choices within those windows.

Impact Areas

Retirement plan participants with self-directed accountsEmployers and plan administrators acting as fiduciariesDepartment of Labor's regulatory authority over retirement investmentsFinancial institutions providing brokerage services for retirement plans

Generated by legislative-analyst-2025 on Nov 4, 2025