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OneDigital Retirement Adviser Discusses the Basics of Qualified Default Investment Alternatives

Over 75% of plan sponsors use a target date fund as their default investment option for automatic enrollment, according to the 2021 PLANSPONSOR Defined Contribution Survey.

The use of qualified default investment alternatives is becoming the overwhelmingly popular option for all plan sponsors. David Morehead, vice president, OneDigital Retirement and Wealth, stated in a PLANADVISOR article titled “QDIA Basics” that “99% of OneDigital plan sponsor clients, use an age-based QDIA.” There are many potential benefits of using a QDIA for both the plan sponsor and the participant.

In the article, Morehead describes the benefits for both parties.


For employees, it takes what can sometimes feel like guesswork or maybe uninformed decision making out of the equation and allows the professional money manager to allocate their assets on their behalf with a lot of thought and research behind the decisions being made there.

Plan Sponsors

“The fiduciary liability protection that comes with QDIA compliance makes employers tremendously more comfortable putting employees in an investment option that entails a little bit of risk but is likely the best investment option for them long term.
— David Morehead, Vice President, OneDigital Retirement & Wealth

Read the PLANSPONSOR article here.

Want to read more understanding different investment types? Check out his recent article: What Every Plan Sponsor Should Know About Collective Investment Trusts.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.