Melling Tool Company 401(k) Review & Grade
The Melling Employees' 401(k) Plan
Jackson, MIManufacturing506 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,833Employer $ per active participant
$3,928Employee $ saved per active participant
0.24%Direct admin cost, % of plan assets
$35.6MNet plan assets, end of year
$64,243Average balance per account
Score breakdown
- Employer generosity19.4 / 5039th percentile for employer $ per participant
- Low cost12.3 / 2549th percentile for low admin cost vs. same-size plans
- Employee saving5.3 / 1535th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score44 / 100 · Grade D
This plan vs. peers
Peers: Manufacturing plans with 500–2,499 active participants (2,376 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 39th |
| Lower admin cost | 49th |
| Employee saving | 35th |
| Peers that auto-enroll | 59% |
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Red flags from the filing
Corrective distributions: the plan refunded $27,095 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Melling Tool put in about $1,833 per active participant, below the typical peer ($2,320). 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.
- 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 | $928,330 |
| Participant (employee) contributions | $1,989,575 |
| Other contributions (incl. rollovers in) | $349,997 |
| Administrative expenses paid from the plan | $79,128 |
| Contract administrator fees | $59,134 |
| Investment advisory & management fees | $19,994 |
| Benefits paid out | $3,532,194 |
| Net assets, start / end of year | $31.5M / $35.6M |
| Active participants, start / end of year | 521 / 492 |
| Participants with account balances | 554 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Rehmann Robson |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $59,133 reported compensation |
| Wells Fargo Advisors | $20,000 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251007065608NAL0007625632001, received 2025-10-07, EIN 38-1527270, plan #006, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.