As you work with your investment adviser on the content of your annual 401(k) plan employee education sessions, now is the time to determine whether it makes sense to re-enroll all of your participants into your Qualified Default Investment Alternative funds. A number of employers re-enroll all participants into their QDIA default funds (typically target-date funds) each year for the following reasons:
1. Professional investment management. Many participants speak with family and friends or other investment experts when they set their investment elections at enrollment. As a result, some of their fund choices may not have been the best. Enrolling participants into the appropriate target-date fund ensures that their account balances are managed by investment professionals.
