QDIA Notices and Default Investments

[Pammie57]

from a previous post - it is my new understanding that ANY retirement plan (not just 401k) that allows participants to self-direct must provide a default investment and must issue the notice to participants "describing this investment"...long term - it should be a target date fund or a balanced fund?

What if the plan allows for 100% open ended investments and the broker holds the participant contribution/funds in a liquid cash fund/bank sweep account until they receive instructions from the participant? For example - I have a plan with Charles Schwab and that is what I was told. There is no balanced fund or target fund set up as the default.

What if any type of QDIA notice should go out? I am uncertain at this point.

Thanks!

[401king]

If there is no balance fund or target-date setup as a default, then there likely is no QDIA. There is no requirement for a QDIA. If it is at Schwab using their PCRA platform, then the plan should be meeting the 404© requirements. It's those requirement you'll need to meet; not QDIA.