Business Retirement Plans | Ninth Installment

Do you know what a 401(k) QDIA is? 🤔

A qualified default investment alternative (QDIA) is the plan’s default investment. It is used when an employee contributes to the plan without having specified how the money should be invested.

Since the Pension Protection Act of 2006, which allowed the funds to be QDIAs, target date funds have increased in popularity. Recent surveys show that due to a better understanding of target date funds, 86% of plans now utilize them as the QDIA.

In our latest episode on business retirement plans, Wealth Management Advisor David Freisner discusses potential issues with target date funds. Learn more about business retirement planning: contact a Konza Global advisor at [email protected].

The information provided in this publication is for general information only and is not intended to provide specific recommendations.