Meritage Homes Corporation 401(k) Review & Grade
Meritage Homes Corporation 401(k) Savings Plan
Scottsdale, AZConstruction1,944 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$4,166Employer $ per active participant
$10,749Employee $ saved per active participant
0.49%Direct admin cost, % of plan assets
$209.8MNet plan assets, end of year
$81,895Average balance per account
Score breakdown
- Employer generosity43.2 / 5086th percentile for employer $ per participant
- Low cost6.0 / 2524th percentile for low admin cost vs. same-size plans
- Employee saving14.3 / 1595th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score71 / 100 · Grade B
This plan vs. peers
Peers: Construction plans with 500–2,499 active participants (498 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 86th |
| Lower admin cost | 24th |
| Employee saving | 95th |
| Peers that auto-enroll | 44% |
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Red flags from the filing
Corrective distributions: the plan refunded $5,548 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Meritage Homes put in about $4,166 per active participant, more than the typical peer ($1,672). 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.
- Direct plan expenses (0.49% 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.
- 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 | $8,097,752 |
| Participant (employee) contributions | $20,895,573 |
| Other contributions (incl. rollovers in) | $1,288,153 |
| Administrative expenses paid from the plan | $939,388 |
| Investment advisory & management fees | $18,550 |
| Other admin expenses | $732,013 |
| Benefits paid out | $21,697,433 |
| Net assets, start / end of year | $176.0M / $209.8M |
| Active participants, start / end of year | 1,927 / 1,961 |
| Participants with account balances | 2,562 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Cbiz Cpas P.C. |
Largest service providers (Schedule C)
| Merrill Lynch, Pierce, Fenner and S | $178,200 reported compensation |
| Cbiz MHM, LLC - Phoenix | $18,550 reported compensation |
| Alliant Retirement Services LLC | $10,625 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251009105544NAL0015314850001, received 2025-10-09, EIN 86-0611231, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.