QDIA definition
Examples of QDIA in a sentence
The University and the Union will select a new Qualified Default Investment Alternative (QDIA) within a timeframe to be determined by the University’s Benefits Services Group (BSG).
For Plans electing to offer the Automatic Enrollment QDIA using Managed Account Services, investment authority for the QDIA will remain with the Sponsor.
If participants are defaulted into a QDIA, such participants timely receive the QDIA notices under Section 2550.404c-5(c)(3) of the DOL Regulations.
These items may include notices required for regulations (e.g., notices for QDIA, EACA/QACA, and safe harbor 401(k) contributions).
The automatic enrollment deduction percentage will be 1% of compensation on a pretax basis which will be deposited in the Plan’s appropriate Qualified Default Investment Allocation (QDIA) Target Date fund.
Include separate cover letter for Annual Investment Notice (QDIA) (only applies for plans with QDIA AND safe harbor or automatic contribution provisions).
The investment options directly above have all been reviewed by the related fund company and determined by it to meet the definition of a QDIA under applicable law.
Plan Sponsor agrees to provide any required QDIA notices to Participants in accordance with ERISA Section 404(c)(5) and the regulations thereunder.
The QDIA requirements may apply to Automatic Contribution Arrangements (EACAs or QACAs as described in paragraph 4.11) or to other arrangements where Participant accounts are automatically invested in default funds.
Similarly, if a Plan has designated an existing QDIA, funds held in the Plan’s existing QDIA will be mapped to the new QDIA designated by Sponsor.