Cotton Holdings, Inc. 401(k) Review & Grade
Cotton Holdings, Inc. 401(k) Plan
Houston, TXAdministrative, Support & Staffing Services1,146 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,442Employer $ per active participant
$3,724Employee $ saved per active participant
0.59%Direct admin cost, % of plan assets
$22.1MNet plan assets, end of year
$20,677Average balance per account
Score breakdown
- Employer generosity35.0 / 5070th percentile for employer $ per participant
- Low cost4.5 / 2518th percentile for low admin cost vs. same-size plans
- Employee saving10.4 / 1569th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score57 / 100 · Grade C
This plan vs. peers
Peers: Administrative, Support & Staffing Services plans with 500–2,499 active participants (401 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 70th |
| Lower admin cost | 18th |
| Employee saving | 69th |
| Peers that auto-enroll | 27% |
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Red flags from the filing
Corrective distributions: the plan refunded $257 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Cotton Holdings put in about $1,442 per active participant, more than the typical peer ($712). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Direct plan expenses (0.59% of assets) are well above similar-size plans (0.23%). Check your annual fee disclosure, choose low-cost index funds if you can, and think about whether savings beyond the match belong in an IRA.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $1,652,102 |
| Participant (employee) contributions | $4,266,180 |
| Other contributions (incl. rollovers in) | $885,562 |
| Administrative expenses paid from the plan | $112,103 |
| Contract administrator fees | $112,103 |
| Benefits paid out | $2,948,959 |
| Net assets, start / end of year | $16.1M / $22.1M |
| Active participants, start / end of year | 1,159 / 1,132 |
| Participants with account balances | 1,070 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Harper & Pearson Company, P.C. |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $112,103 reported compensation |
| Gallagher Fiduciary Advisors, LLC | $21,547 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250903102643NAL0025851232001, received 2025-09-03, EIN 26-4371554, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.