QDIA Annual Notice

QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA) ANNUAL NOTICE

TO: All Participants and Beneficiaries of the [PLAN NAME]

FROM: [PLAN SPONSOR/ADMINISTRATOR NAME]

DATE: [DATE]

RE: Annual Notice Regarding Your Plan's Qualified Default Investment Alternative

PURPOSE OF THIS NOTICE

This notice is being provided to inform you about the Qualified Default Investment Alternative (QDIA) available under [PLAN NAME] (the "Plan"). Federal law requires that we provide this notice to all participants and beneficiaries at least 30 days before the beginning of the Plan Year, and no later than 60 days before the Plan Year begins.

SECTION 1: DESCRIPTION OF THE QDIA

The Plan has designated the following investment as a Qualified Default Investment Alternative:

Investment Name: [QDIA NAME]
Investment Type: ☐ Target-Date Fund
☐ Balanced Fund
☐ Managed Account
☐ Capital Preservation (first 120 days only)

Fund Objective: [BRIEF DESCRIPTION OF INVESTMENT OBJECTIVE]

Fund Manager/Provider: [FUND MANAGER/PROVIDER NAME]

Expense Ratio/Annual Fees: [___________]%

Key Features:

• [FEATURE 1]
• [FEATURE 2]
• [FEATURE 3]

SECTION 2: CIRCUMSTANCES REQUIRING DEFAULT INVESTMENT

Your contributions (and any employer matching contributions) will be invested in the QDIA if:

1. You are automatically enrolled in the Plan and do not make an affirmative investment election within [NUMBER OF DAYS] days of enrollment; OR
2. You fail to direct the investment of contributions after automatic enrollment has been implemented.

SECTION 3: YOUR RIGHT TO DIRECT INVESTMENTS

You have the right to direct the investment of your account balance away from the QDIA at any time, without penalty or restriction. To make an investment election:

1. Log into your account at [WEBSITE/PORTAL]
2. Contact the Plan Administrator at [PHONE/EMAIL]
3. Submit a completed [INVESTMENT ELECTION FORM NAME] to [ADDRESS]

Your investment directions will be processed as of the [EFFECTIVE DATE/NEXT TRADING DATE].

SECTION 4: TRANSFER-OUT RIGHTS

You may transfer your account balance from the QDIA to any other investment option available under the Plan at any time without:

• Restrictions: No holding periods or lock-up provisions
• Fees or Penalties: No additional fees, surrender charges, or early withdrawal penalties

Transfers are effective as of the [NEXT TRADING DATE/SPECIFIED FREQUENCY].

SECTION 5: FEES AND EXPENSES

Ongoing Fund Expenses

The QDIA has an annual expense ratio of [___________]%, which includes:

Plan-Level Fees

In addition to fund expenses, the Plan may deduct reasonable administrative fees for:

• Recordkeeping and account maintenance: $[_____] per year (or [_____]% of assets)
• Participant communications
• Compliance and regulatory services

SECTION 6: ALTERNATIVE INVESTMENT OPTIONS

The Plan offers the following investment alternatives, from which you may direct your contributions at any time:

For detailed information about each investment option, including performance history, investment strategy, and fund prospectuses, visit [WEBSITE] or contact the Plan Administrator.

SECTION 7: CONTACT INFORMATION

Plan Administrator:
[PLAN ADMINISTRATOR NAME]
[ADDRESS]
[PHONE]
[EMAIL]

Investment Company:
[FUND PROVIDER NAME]
[PHONE]
[WEBSITE]

Additional Resources:

• Department of Labor QDIA Resources: https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/investment-advice
• Plan Summary Plan Description (SPD): Available upon request or at [WEBSITE]

SECTION 8: IMPORTANT INFORMATION

Your Rights Under ERISA

As a participant in this ERISA-covered plan, you have important rights:

• The right to receive information about your plan and benefits
• The right to direct the investment of your account balance
• The right to an impartial hearing regarding any denied benefit claims
• The right to recover benefits owed to you
• The right to enforce your rights under the plan through legal proceedings

Questions?

If you have questions about your plan benefits, investment options, or this notice, please contact the Plan Administrator. For additional information about your rights under ERISA, contact:

U.S. Department of Labor
Employee Benefits Security Administration (EBSA)
1-866-4-USA-DOL (1-866-487-2365)
https://www.dol.gov/agencies/ebsa

APPENDIX A: TARGET-DATE FUND GLIDE PATH (if applicable)

APPENDIX B: BALANCED FUND ASSET ALLOCATION (if applicable)

Current Target Allocation:

Rebalancing Policy: [DESCRIBE FREQUENCY AND METHODOLOGY]

APPENDIX C: MANAGED ACCOUNT STRATEGY (if applicable)

Investment Approach: [DESCRIBE METHODOLOGY]

Rebalancing Frequency: [DESCRIBE FREQUENCY]

Risk Profile Options: ☐ Conservative
☐ Moderate
☐ Aggressive

Service Provider: [NAME AND CONTACT]

This notice is required by federal law and must be retained for your records.

Acknowledgment (Optional):

I acknowledge that I have received the QDIA Annual Notice dated [DATE].

Participant Name (Print): [_________________________________]

Participant Signature: [_________________________________]

Date: [__/__/____]