Tower Semiconductor Newport Beach Inc. 401(k) Review & Grade
Tower Semiconductor Newport Beach Retirement Savings Plan
Newport Beach, CAManufacturing1,092 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$2,319Employer $ per active participant
$7,006Employee $ saved per active participant
0.08%Direct admin cost, % of plan assets
$176.2MNet plan assets, end of year
$187,289Average balance per account
Score breakdown
- Employer generosity24.9 / 5050th percentile for employer $ per participant
- Low cost20.0 / 2580th percentile for low admin cost vs. same-size plans
- Employee saving11.0 / 1573th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score46 / 100 · Grade C
This plan vs. peers
Peers: Manufacturing plans with 500–2,499 active participants (2,376 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 50th |
| Lower admin cost | 80th |
| Employee saving | 73th |
| Peers that auto-enroll | 59% |
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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 ($9,723,048 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $14,768 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Tower Semiconductor Newport Beach put in about $2,319 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 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 | $2,530,703 |
| Participant (employee) contributions | $7,646,887 |
| Other contributions (incl. rollovers in) | $562,075 |
| Administrative expenses paid from the plan | $125,069 |
| Investment advisory & management fees | $46,741 |
| Benefits paid out | $12,285,666 |
| Net assets, start / end of year | $151.3M / $176.2M |
| Active participants, start / end of year | 1,080 / 1,103 |
| Participants with account balances | 941 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Dbbmckennon |
Largest service providers (Schedule C)
| Fidelity Investments Institutional | $78,328 reported compensation |
| Strategic Advisors, Inc. | $46,741 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251015111012NAL0002192195001, received 2025-10-15, EIN 75-3005127, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.