Default Investment Alternatives under Participant Directed Individual Account Plans

The Department of Labor finalized a regulation under ERISA section 404(c)(5)(A). The regulation offers guidance on the types of investment vehicles that plans may choose as their ‘‘qualified default investment alternative’’ (QDIA). This information collection requires annual notices to participants and beneficiaries whose account assets could be invested in a ‘qualified default investment alternative’’ (QDIA) and requires plans to pass any pertinent materials they receive from a QDIA to those participants and beneficiaries with assets invested in the QDIA. This information collection is necessary to inform participants and beneficiaries, who do not make investment elections, of the consequences of their failure to elect investments, the ways in which their account assets will be invested through the QDIA, and of their continuing opportunity to make other investment elections, including options available under the plan.

The latest form for Default Investment Alternatives under Participant Directed Individual Account Plans expires 2026-09-30 and can be found here.