The William Carter Company 401(k) Review & Grade
Carters 401(k) Savings Plan
Atlanta, GAManufacturing6,288 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,384Employer $ per active participant
$2,558Employee $ saved per active participant
0.18%Direct admin cost, % of plan assets
$318.0MNet plan assets, end of year
$45,814Average balance per account
Score breakdown
- Employer generosity8.1 / 5016th percentile for employer $ per participant
- Low cost9.4 / 2538th percentile for low admin cost vs. same-size plans
- Employee saving1.8 / 1512th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score26 / 100 · Grade F
This plan vs. peers
Peers: Manufacturing plans with 2,500–9,999 active participants (566 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 16th |
| Lower admin cost | 38th |
| Employee saving | 12th |
| Peers that auto-enroll | 70% |
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Red flags from the filing
Corrective distributions: the plan refunded $1,381,568 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- William Carter put in about $1,384 per active participant, below the typical peer ($3,452). 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 (0.18% of assets) are well above similar-size plans (0.12%). 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 | $8,700,848 |
| Participant (employee) contributions | $16,083,688 |
| Other contributions (incl. rollovers in) | $781,168 |
| Administrative expenses paid from the plan | $555,505 |
| Investment advisory & management fees | $73,212 |
| Benefits paid out | $32,735,992 |
| Net assets, start / end of year | $285.6M / $318.0M |
| Active participants, start / end of year | 6,486 / 6,091 |
| Participants with account balances | 6,941 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | RSM US LLP |
Largest service providers (Schedule C)
| Merrill Lynch, Pierce, Fenner and S | $438,568 reported compensation |
| Cook Street Consulting | $54,500 reported compensation |
| RSM US LLP | $43,750 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251009153755NAL0004049139001, received 2025-10-09, EIN 04-1156680, plan #004, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.