Employee Benefit Services
Retirement Plan Services
- 401(k)
- Profit Sharing
- Defined Benefit Pension
- SEP and SIMPLE IRAs
- Employee Stock Ownership Plan
Employee Benefit Programs
- Tax advantaged savings
- Health and disability insurance
- Section 125 cafeteria plans
- Payroll deduction for Roth or traditional IRA programs suitable for most employees, with or without a retirement plan
- Payroll deduction for 529 college savings plans, disability and long-term care insurance
- Seminars or individual consultations for job changers and retirees
- Employee 401(k) education
- Financial education programs
What does QDIA mean for your 401(K)?
The 401(K) Good News and the Challenging News
The Department of Labor issued final regulations on October 24, 2007 relating to Qualified Default Investment Alternatives (QDIA). The QDIA regs create a safe harbor from fiduciary risk for employers who select an investment for a participant who fails to make his or her own investment election.
Employers following the new QDIA regulations will have no legal liability for market fluctuations. QDIA’s are required to be a diversified investment portfolio, rather than the cash or money market investments used in the past. This choice will no longer protect plan sponsors from potential fiduciary liability.
Review your plan’s QDIA at a minimum as soon as possible because plan advisors and record-keepers will most likely, not make this change for you automatically. Manage your risk by choosing a proper QDIA as the default investment for your plan. Plan sponsors are compelled to take prudent fiduciary care in selecting and monitoring all of the investments offered in their plan.
For assistance or more information call
847-888-8600
