The Role of Qualified Default Investment Alternatives in Retirement Plans
QDIAs provide a prudent default for participants who do not make an investment election, and can offer fiduciary relief when requirements are met.
Why QDIAs Exist
QDIAs provide a prudent default for participants who do not make an investment election, and can offer fiduciary relief when requirements are met.
QDIA Types
Target‑date funds (TDFs)
Balanced funds
Managed accounts that allocate based on age or other factors
Operational Requirements
Provide the required QDIA notice, offer investment transfer rights, and prudently monitor selected QDIA options.
Plan Sponsor Action Checklist
Checklist
Verify your QDIA is documented in the IPS and plan file.
Checklist
Send annual QDIA notices and retain proof of delivery.
Checklist
Review fees, glidepaths, and benchmarks annually.
Talk to our team
References
- 29 CFR 2550.404c‑5; DOL FAB 2008‑03 (QDIA applicability/relief).