Help Center
1. What is a Managed Account QDIA, and how does it work for dental practice 401(k) plans?
Answer: A Managed Account Qualified Default Investment Alternative (QDIA) is a professionally managed investment option designed for participants who do not actively choose their investment allocations in a 401(k) plan. In a dental practice 401(k) plan, if an employee does not make an investment choice, their contributions are automatically directed into the Managed Account QDIA. This account is tailored to the individual's age, risk tolerance, and retirement goals, helping to optimize their investment strategy over time.
2. What are the key features of a Managed Account QDIA?
Answer: Key features of a Managed Account QDIA include:
- Personalized Investment Strategy: Tailored investment allocations based on individual participant profiles.
- Automatic Rebalancing: Regular adjustments to maintain the target asset allocation.
- Professional Management: Investment decisions are made by experienced portfolio managers.
- Lifecycle Approach: Investments are adjusted as the participant approaches retirement, generally becoming more conservative over time.
3. How do employees enroll in a Managed Account QDIA?
Answer: Employees are automatically enrolled in the Managed Account QDIA if they do not actively select their investment options during the enrollment process. They can also choose to opt into the Managed Account QDIA at any time by contacting their plan administrator or through the plan’s online portal.
4. What fees are associated with a Managed Account QDIA?
Answer: Fees for a Managed Account QDIA typically include management fees, which cover the cost of professional investment management, and underlying fund expenses. These fees can vary based on the plan provider and the specific investments chosen. It’s important for participants to review the fee structure in the plan’s Summary Plan Description or consult with the plan administrator for detailed information.
5. Can employees customize their investment allocations within the Managed Account QDIA?
Answer: While the Managed Account QDIA is designed to provide a personalized investment strategy, employees can typically adjust their risk tolerance and retirement goals through the plan’s online portal or by contacting the plan administrator. However, the core investment strategy remains managed by professionals to ensure optimal performance.
6. What should participants do if they experience issues with their Managed Account QDIA?
Answer: If participants encounter issues, such as difficulty accessing their account or questions about their investment strategy, they should first contact the plan administrator or the customer support team of the plan provider. Most providers offer dedicated support via phone, email, or chat to assist with any concerns.
7. How often are the investments within a Managed Account QDIA reviewed and adjusted?
Answer: Investments within a Managed Account QDIA are typically reviewed and rebalanced on a regular basis—often quarterly or semi-annually. This ensures that the investment allocations remain aligned with the participant's risk profile and retirement timeline. Significant market changes may also trigger adjustments outside of the regular schedule.
8. What resources are available for employees to learn more about the Managed Account QDIA?
Answer: Employees can access a variety of resources, including:
- Educational materials provided by the plan administrator, such as brochures and webinars.
- Online tools and calculators on the plan provider’s website to help understand investment options.
- One-on-one consultations with financial advisors or plan representatives to discuss specific questions or concerns.
9. How does a Managed Account QDIA benefit dental practice owners and their employees?
Answer: For dental practice owners, offering a Managed Account QDIA can enhance employee satisfaction and retention by providing a simple, effective way for employees to save for retirement. It reduces the burden of decision-making for employees who may feel overwhelmed by investment choices, ensuring they have a professional strategy in place to grow their retirement savings.
10. Can participants opt out of the Managed Account QDIA?
Answer: Yes, participants can opt out of the Managed Account QDIA at any time. They can choose alternative investment options available in the plan. It’s important for participants to understand their investment choices and the implications of opting out, which may involve taking on more responsibility for their investment decisions.
To set up your free 1-on-1 investment consultation with one of our fiduciary advisors, please call (480) 364-7401; Email: hello@cognisgrp.com; or schedule a free zoom meeting HERE