Target-date funds that feature annuities may be used asqualified default investment alternatives in 401(k) plans, according to a Labor Department information letter.
The letter, which was a response to an inquiry from TIAAregarding one of the firm’s custom TDF products, attempts toclarify existing agency guidance on how TDFs with annuities can comply with QDIAprotocol.
One of the existing requirements for an investment to qualify asa QDIA is that participants must be able totransfer their investment from one product to another qualifiedoption after three months.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.