QDIA stands for “qualified default investment alternative” Under the Pension Protection Act (PPA) of 2006, fiduciary relief was provided for retirement plan sponsors who automatically place participants (who do not specifically choose other investments) into alternatives such as target-date or balanced fund investments. QDIAs are intended to help ensure that plan participants who may not be comfortable or knowledgeable about making investment decisions are invested in well diversified investment portfolios with appropriate time horizons.

← What is a QDIA?