Magna Legal Services, LLC 401(k) Review & Grade
Magna Legal Services 401(k) / Profit Sharing Plan
Philadelphia, PAProfessional, Scientific & Technical Services726 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,965Employer $ per active participant
$4,629Employee $ saved per active participant
0.38%Direct admin cost, % of plan assets
$40.5MNet plan assets, end of year
$46,042Average balance per account
Score breakdown
- Employer generosity16.8 / 5034th percentile for employer $ per participant
- Low cost8.1 / 2532th percentile for low admin cost vs. same-size plans
- Employee saving3.6 / 1524th percentile for employee $ per participant
- Plan features7 / 10Auto-enrollment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score23 / 100 · Grade F
This plan vs. peers
Peers: Professional, Scientific & Technical Services plans with 500–2,499 active participants (1,469 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 34th |
| Lower admin cost | 32th |
| Employee saving | 24th |
| Peers that auto-enroll | 48% |
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Red flags from the filing
Late deposits: the filing says some employee contributions were not sent to the plan on time ($587,153 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $24,131 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Magna Legal Services put in about $1,965 per active participant, below the typical peer ($3,082). 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.
- Direct plan expenses (0.38% 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.
- The plan reported late deposits of employee contributions. Compare your pay stubs with your account statements, and contact the plan administrator if money shows up late.
- 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 | $1,426,621 |
| Participant (employee) contributions | $3,360,330 |
| Other contributions (incl. rollovers in) | $1,636,042 |
| Administrative expenses paid from the plan | $115,044 |
| Investment advisory & management fees | $10,457 |
| Other admin expenses | $5,839 |
| Benefits paid out | $3,796,024 |
| Net assets, start / end of year | $20.2M / $40.5M |
| Active participants, start / end of year | 631 / 821 |
| Participants with account balances | 879 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Perlson LLP |
Largest service providers (Schedule C)
| Empower Annuity Insurance Company O | $98,748 reported compensation |
| MML Investors Services LLC | $61,219 reported compensation |
| Empower Advisory Group, LLC | $10,457 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251013130526NAL0001998464001, received 2025-10-13, EIN 20-8474245, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.