When employees are automatically enrolled into the plan, the plan’s fiduciaries must select an appropriate Qualified Default Investment Alternative (QDIA) for participants who fail to provide direction over the investment of their individual accounts. The final regulation describes three long-term mechanisms for investing participant contributions: one group-based and two individually-based QDIAs. The chart below outlines foundational considerations from which plan fiduciaries may consider when prudently selecting and monitoring a QDIA for their plan.

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