Covenant Transport, Inc. 401(k) Review & Grade
Covenant Transportation Group 401(k) & Profit Sharing Plan
Chattanooga, TNTransportation & Warehousing3,262 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$590Employer $ per active participant
$2,024Employee $ saved per active participant
0.33%Direct admin cost, % of plan assets
$79.3MNet plan assets, end of year
$38,730Average balance per account
Score breakdown
- Employer generosity8.2 / 5016th percentile for employer $ per participant
- Low cost5.1 / 2521th percentile for low admin cost vs. same-size plans
- Employee saving3.1 / 1520th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score16 / 100 · Grade F
This plan vs. peers
Peers: Transportation & Warehousing plans with 2,500–9,999 active participants (123 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 16th |
| Lower admin cost | 21th |
| Employee saving | 20th |
| Peers that auto-enroll | 46% |
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Red flags from the filing
Corrective distributions: the plan refunded $135,817 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Covenant Transport put in about $590 per active participant, below the typical peer ($1,834). 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 (0.33% 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.
- 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 | $1,924,960 |
| Participant (employee) contributions | $6,604,845 |
| Other contributions (incl. rollovers in) | $1,192,156 |
| Administrative expenses paid from the plan | $243,056 |
| Investment advisory & management fees | $55,000 |
| Benefits paid out | $10,303,701 |
| Net assets, start / end of year | $69.8M / $79.3M |
| Active participants, start / end of year | 3,096 / 3,429 |
| Participants with account balances | 2,047 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Coulter & Justus, P.C. |
| Employer stock held by plan | $4,713,974 |
Largest service providers (Schedule C)
| Transamerica Retirement Solutions | $164,856 reported compensation |
| Morgan Stanley Global Banking | $55,000 reported compensation |
| Coulter & Justus, P.C. | $23,200 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250701135819NAL0012757569001, received 2025-07-01, EIN 88-0320154, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.