Understanding Default Investments: A Focus on Target Date Funds

The Department of Labor (DOL) doesn’t mandate which types of plans should use which types of QDIA solutions. However, there are some best practice considerations to make when determining which QDIA structure may work best for your plan. Target date funds have become the default of defaults, meaning the most frequently used solution for plan sponsors. It falls in a sweet spot of complexity / customization / cost.

In this toolkit, we walk plan sponsors through all QDIA solutions with a special focus on target date funds.