Discover Financial Services 401(k) Review & Grade
Discover Financial Services 401k Plan
Riverwoods, ILFinance & Insurance20,290 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$6,460Employer $ per active participant
$7,144Employee $ saved per active participant
0.08%Direct admin cost, % of plan assets
$3.2BNet plan assets, end of year
$120,325Average balance per account
Score breakdown
- Employer generosity29.6 / 5059th percentile for employer $ per participant
- Low cost13.6 / 2554th percentile for low admin cost vs. same-size plans
- Employee saving1.9 / 1513th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
Total score55 / 100 · Grade C
This plan vs. peers
Peers: Finance & Insurance plans with 10,000+ active participants (72 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 59th |
| Lower admin cost | 54th |
| Employee saving | 13th |
| Peers that auto-enroll | 74% |
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Red flags from the filing
No red flags were reported on this filing's compliance questions.
What to do if you're in this plan
- Discover Financial Services put in about $6,460 per active participant, more than the typical peer ($5,179). 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.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- 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 | $131,076,331 |
| Participant (employee) contributions | $144,949,152 |
| Other contributions (incl. rollovers in) | $25,181,732 |
| Administrative expenses paid from the plan | $2,355,465 |
| Investment advisory & management fees | $2,355,465 |
| Benefits paid out | $221,590,832 |
| Net assets, start / end of year | $2.8B / $3.2B |
| Active participants, start / end of year | 20,344 / 20,237 |
| Participants with account balances | 26,671 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Crowe LLP |
Largest service providers (Schedule C)
| State Street Global Advisors | $2,184,428 reported compensation |
| JP Morgan Funds Services | $115,550 reported compensation |
| Loomis, Sayles & Company | $45,779 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251006083617NAL0001926915001, received 2025-10-06, EIN 36-2517428, plan #003, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.