Encompass Health Corporation 401(k) Review & Grade
Encompass Health Corporation 401(k) Retirement Plan
Birmingham, ALHealth Care & Social Assistance28,184 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$1,143Employer $ per active participant
$3,855Employee $ saved per active participant
0.07%Direct admin cost, % of plan assets
$1.7BNet plan assets, end of year
$63,827Average balance per account
Score breakdown
- Employer generosity18.4 / 5037th percentile for employer $ per participant
- Low cost14.0 / 2556th percentile for low admin cost vs. same-size plans
- Employee saving5.5 / 1537th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score38 / 100 · Grade D
This plan vs. peers
Peers: Health Care & Social Assistance plans with 10,000+ active participants (115 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 37th |
| Lower admin cost | 56th |
| Employee saving | 37th |
| Peers that auto-enroll | 52% |
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Red flags from the filing
Corrective distributions: the plan refunded $826,652 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Encompass Health put in about $1,143 per active participant, below the typical peer ($2,086). Any match is still an instant return, so contribute enough to get all of it.
- 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.
- 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 | $32,226,021 |
| Participant (employee) contributions | $108,639,298 |
| Other contributions (incl. rollovers in) | $20,306,357 |
| Administrative expenses paid from the plan | $1,195,238 |
| Investment advisory & management fees | $434,072 |
| Benefits paid out | $149,654,018 |
| Net assets, start / end of year | $1.5B / $1.7B |
| Active participants, start / end of year | 29,454 / 26,914 |
| Participants with account balances | 26,994 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Warren, Averett, LLC |
Largest service providers (Schedule C)
| Schwab Retirement Plan Services Inc | $1,108,655 reported compensation |
| Morgan Stanley Domestic Holdin | $60,000 reported compensation |
| Warren Averett, LLC | $26,000 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250905130127NAL0010601475001, received 2025-09-05, EIN 63-0860407, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.