Fifth Circuit Dismisses Labor Department’s 401(k) Rule Case

The US Court of Appeals for the Fifth Circuit has granted the US Labor Department’s unopposed motion to dismiss its case seeking to revive a Biden-era 401(k) rule.

The 2024 regulation would have expanded the strictest fiduciary duties under federal benefits law to cover one-time rollovers out of 401(k)s and into new accounts and investment vehicles. It invoked Wall Street ire and drew a pair of lawsuits from life insurer groups, who successfully convinced two separate Texas federal courts to pause the rule.

The DOL originally appealed those decisions toward the tail end of the last administration. The agency ...