QDIAs pose more questions than answers to employers

Silva, Chris
April 2008
Employee Benefit News;Apr2008, Vol. 22 Issue 5, p38
The article discusses issues concerning qualified default investment alternatives (QDIA). Several QDIA are allowed under the Pension Protection Act, including target-date or age-based funds, balanced or risk-based funds, and professionally managed accounts. The drawback of target-date funds is explained. When selecting age-based or risk-based QDIA, employers should make sure fiduciaries are assessing the ability of plans to accumulate and keep wealth, while ensuring participants do not opt out of plans.


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