QDIA Selection

Per the Department of Labor’s (DOL) guidance, the intent of the regulation “is to ensure that an investment qualifying as a QDIA is appropriate as a single investment capable of meeting a worker’s long-term retirement savings needs.”

What is the DOL's guidance to satisfy the QDIA requirements?
  • A QDIA may not impose financial penalties or otherwise restrict the ability of a participant or beneficiary to transfer the investment from the qualified default investment alternative to any other investment alternative available under the plan.
  • A QDIA must be either managed by an investment manager, or an investment company registered under the Investment Company Act of 1940.
  • A QDIA must be diversified so as to minimize the risk of large losses.
  • A QDIA may not invest participant contributions directly in employer securities.
  • A QDIA may be:
  • Life-cycle or targeted-retirement-date fund;
  • Balanced fund; or
  • Professionally managed account.

Source: Department of Labor (DOL)

common qdia options v2
institutional landing investment consulting

Investment Consulting

institutional landing vendor management

Vendor Management

institutional landing fiduciary guidance

Fiduciary Governance

institutional landing participant services

Participant Services

Complimentary Fee Analysis and Investment Review

All we need is a copy of your 408(b)(2) Plan Sponsor Fee Disclosure and we will provide a report which benchmarks fees and investment performance against industry averages.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us