Proper Hospitality LLC 401(k) Review & Grade
Proper Hospitality 401(k) Plan
Santa Monica, CAReal Estate & Rental1,115 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$219Employer $ per active participant
$1,446Employee $ saved per active participant
0.71%Direct admin cost, % of plan assets
$8.9MNet plan assets, end of year
–Average balance per account (account count looks misreported)
Score breakdown
- Employer generosity4.1 / 508th percentile for employer $ per participant
- Low cost3.1 / 2512th percentile for low admin cost vs. same-size plans
- Employee saving2.4 / 1516th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score10 / 100 · Grade F
This plan vs. peers
Peers: Real Estate & Rental plans with 500–2,499 active participants (291 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 8th |
| Lower admin cost | 12th |
| Employee saving | 16th |
| Peers that auto-enroll | 47% |
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Red flags from the filing
Corrective distributions: the plan refunded $153,622 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Proper Hospitality put in about $219 per active participant, below the typical peer ($1,279). 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 (0.71% 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.
- 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 | $243,931 |
| Participant (employee) contributions | $1,612,525 |
| Other contributions (incl. rollovers in) | $91,261 |
| Administrative expenses paid from the plan | $55,498 |
| Benefits paid out | $636,265 |
| Net assets, start / end of year | $6.6M / $8.9M |
| Active participants, start / end of year | 1,147 / 1,083 |
| Participants with account balances | 367 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | PKF O'connor Davies LLP |
Largest service providers (Schedule C)
| Adp, Inc. | $55,498 reported compensation |
| Merrill Lynch Pierce Fenner & Smith | $32,461 reported compensation |
| Adp Broker-Dealer | $0 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251015172415NAL0002700579001, received 2025-10-15, EIN 46-3538198, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.