Excerpt: Target date funds can be an effective investment tool when used properly. The problem is they are often offered by plan sponsors because they are approved by the DOL as a Qualified Default Investment Alternative (QDIA). Plan fiduciaries need to be aware of the various issues involved with offering all investment choices, including target date funds. A closer examination of some of the issues associated with target date funds will assist plan sponsors and fiduciaries in determining whether their 401(k) plans should offer target date funds, how they select these funds, and how they should educate their participants on these funds.