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Qualified Default Investment Alternative
(redirected from QDIA)

   Also found in: Acronyms 0.01 sec.
Qualified Default Investment Alternative
An investment vehicle a fund manager may use for retirement plan contributions in the absence of direction from the plan participant. A qualified default investment alternative must be diversified, may not directly consist of securities in the company for which the plan participant works, and may not penalize the participant for early withdrawal. Qualified default investment alternatives were defined in the Pension Protection Act of 2006 as part of a broader effort to ease automatic enrollment in retirement plans.


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However, as is the case where participants affirmatively elect investment options made available under the plan, it is the Department of Labor's position that the selection of the QDIA itself is still a fiduciary act subject to challenge as a fiduciary breach," she says.
Coordinated Notices On November 15, 2007, the IRS issued a sample participant notice that 401(k) plans can use to satisfy the notice requirements for QACAs, EACAs, and QDIAs.
Plan-level reporting and supporting materials make managing the program simple and allow plan sponsors to tailor solutions compliant with PPA auto enrollment program requirements (ACA, EACA and QACA arrangements) and provides the ability to offer default investment options that meet QDIA requirements.
 
 
 
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