Guitar Center, Inc. 401(k) Review & Grade
Guitar Center, Inc. 401(k) Plan
Westlake Village, CARetail Trade13,774 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$222Employer $ per active participant
$1,035Employee $ saved per active participant
0.04%Direct admin cost, % of plan assets
$182.4MNet plan assets, end of year
–Average balance per account (account count looks misreported)
Score breakdown
- Employer generosity4.9 / 5010th percentile for employer $ per participant
- Low cost18.9 / 2576th percentile for low admin cost vs. same-size plans
- Employee saving4.4 / 1529th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score18 / 100 · Grade F
This plan vs. peers
Peers: Retail Trade plans with 10,000+ active participants (124 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 10th |
| Lower admin cost | 76th |
| Employee saving | 29th |
| Peers that auto-enroll | 32% |
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Red flags from the filing
Benefits not paid when due: the plan reported failing to pay some benefits on time.
Corrective distributions: the plan refunded $876,435 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Guitar Center put in about $222 per active participant, below the typical peer ($689). 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 | $3,053,574 |
| Participant (employee) contributions | $14,260,944 |
| Other contributions (incl. rollovers in) | $1,630,793 |
| Administrative expenses paid from the plan | $73,705 |
| Contract administrator fees | $2,700 |
| Benefits paid out | $18,424,501 |
| Net assets, start / end of year | $157.8M / $182.4M |
| Active participants, start / end of year | 13,469 / 14,078 |
| Participants with account balances | 5,093 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Hotlhouse Carlin & Van Trigt LLP |
Largest service providers (Schedule C)
| Fidelity Investments Institutional | $73,754 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250507133059NAL0007884499001, received 2025-05-07, EIN 85-4210591, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.