Stop Guessing: Using Participant Data to Select the Optimal QDIA

Since 2007, the U.S. Department of Labor has provided plan sponsors with safe harbor guidelines when selecting a qualified default investment alternative, or QDIA. To qualify, plan sponsors must follow a prudent selection process that includes the consideration of specific plan demographics and data. This paper presents a framework for using participant data to help determine which type of QDIA may be most appropriate for a plan.

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