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Target Date Funds in State-Regulated Collective Investment Trusts: Risk and the Basis for a Prohibited Transaction Claim
The Commonsense 401(k) Project Link to more items from this source
[Opinion]
Nov. 4, 2025

"Defined Contribution (DC) plans -- primarily 401(k)s and 403(b)s -- now hold over $12 trillion in assets ... Within these plans, Target Date Funds (TDFs) are the default investment option for most participants. Increasingly, TDFs are being housed in Collective Investment Trusts (CITs) rather than SEC-registered mutual funds.... CITs operate in a poorly regulated gray zone.... TDFs held in state-regulated CITs are therefore emerging as one of the most dangerous and least transparent areas in the retirement system."  MORE >>

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