Sample Qualified Default Investment Alternative (QDIA) Notice

Fiduciary relief may be available with respect to existing defaulted investments that meet the QDIA rules, are moved to a QDIA, and/or are eligible for grandfathered QDIA treatment under the QDIA rules, after notice Is provided and assuming other conditions of the regulation are met.
Disclaimer: If protection under ERISA Section 404(c)(5) is desired, the plan sponsor is responsible for satisfying the QDIA requirements. Because the rules are complex, the plan sponsor is encouraged to consult its investment and/or legal advisors for specific guidance. Nothing contained herein constitutes legal or investment advice upon which any party may rely
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[Plan Name] Plan (Plan)
Qualified Default Investment Arrangement (QDIA) Notice
[Date]
This notice gives you important investment information related to your account under the [insert plan name] (the "Plan").  You should read the notice very carefully to understand how your Plan account assets will be invested if you do not make an investment election. You can find out more about the Plan in other documents, the Plan's Summary Plan Description (SPD), and any Summary of Material Modifications (SMM).
The Plan lets you invest your account in a number of different investment funds. Unless you choose a different investment fund or funds, your Plan account will be invested in the [insert Name of QDIA(s)].
[Note to plan sponsors: The investment selected as the default investment option for participants who failed to provide investment elections must satisfy the Department of Labor regulations for QDIAs. If more than one QDIA is being used for the Plan and/or for different timeframes, you must identify and provide information on the QDIA being used in each particular circumstance. If you are seeking protection for pre-12/24/07 defaulted investments in a grandfathered QDIA fund, for example, you must identify both the grandfathered and new QDIA funds and describe the circumstances under which monies will be invested in each fund. If the default investment is being changed with respect to existing assets, you must provide an explanation of the transition of current assets to the new QDIA.]

[If applicable, add/customize as appropriate:
If you are an existing Plan participant, your balance in the [name of fund] prior to [date] will be moved to [name of QDIA(s)] unless you provide investment instructions by [date]. Balances in [name of grandfathered QDIA fund] as of December 23, 2007, will remain invested in the [name of grandfathered QDIA fund] until you provide instructions to invest those monies in another Plan investment option.]
[Below or Attached] is a general description of the [name of QDIA(s)]'s investment objectives, risk and return characteristics, fees, and expenses. [Note to plan sponsors: You must provide a description of the Plan's QDIA(s), including its investment objectives, risk and return characteristics (if applicable), and fees and expenses, and must describe other circumstances, if any, under which assets may be invested in the QDIA.] More detailed information may be available in the prospectus for the [insert Name of QDIA(s)] , if applicable, which you can get by contacting the Plan Administrator.
[Note to plan sponsors: Additional notice requirements must be met If the plan includes an automatic contribution arrangement.]

You can change how your Plan account is invested, among the Plan's offered investment funds, by [insert description of how a participant may change his/her investment elections]. [Note to plan sponsors: You must insert information on how a participant can direct assets invested in QDt4(s) to other investments in the Plan. You must also describe any allowable restrictions, fees, or expenses that apply when participants or beneficiaries transfer assets from the QDIA(s) to other investment funds.]
To learn more about the Plan's investment funds and procedures for changing how your Plan account is invested you can refer to [identify source]. Also, you can contact the Plan Administrator at:

[Plan administrator name]
[Address]
[Telephone number]
[Email address]

Please contact Michael F. Yates & Company Inc. for additional details. CONTACT MFYCO