Hsbc North America Holdings Inc. 401(k) Review & Grade
Hsbc - North America (u. S.) Tax Reduction Investment Plan
Chicago, ILManagement of Companies6,641 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$8,788Employer $ per active participant
$12,447Employee $ saved per active participant
0.05%Direct admin cost, % of plan assets
$4.9BNet plan assets, end of year
$252,810Average balance per account
Score breakdown
- Employer generosity47.5 / 5095th percentile for employer $ per participant
- Low cost20.2 / 2581th percentile for low admin cost vs. same-size plans
- Employee saving13.7 / 1592th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-8 pts2 issues reported on the filing
Total score83 / 100 · Grade A
This plan vs. peers
Peers: Management of Companies plans with 2,500–9,999 active participants (60 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 95th |
| Lower admin cost | 81th |
| Employee saving | 92th |
| Peers that auto-enroll | 58% |
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Red flags from the filing
No fidelity bond: the plan reported it was not covered by a fidelity bond, which protects participants against theft.
Corrective distributions: the plan refunded $44,444 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Hsbc North America Holdings put in about $8,788 per active participant, more than the typical peer ($3,455). 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 | $58,362,738 |
| Participant (employee) contributions | $82,657,895 |
| Other contributions (incl. rollovers in) | $11,334,438 |
| Administrative expenses paid from the plan | $2,139,838 |
| Other admin expenses | $2,139,838 |
| Benefits paid out | $389,952,415 |
| Net assets, start / end of year | $4.5B / $4.9B |
| Active participants, start / end of year | 6,684 / 6,598 |
| Participants with account balances | 19,508 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Pricewaterhousecoopers LLP |
Largest service providers (Schedule C)
| Vanguard Advisers Inc. | $1,681,574 reported compensation |
| The Vanguard Group, Inc. | $477,904 reported compensation |
| Charles Schwab & Co., Inc. | $5,036 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251015120008NAL0002255187001, received 2025-10-15, EIN 23-2186091, plan #005, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.