Farouk Systems Inc. 401(k) Review & Grade
Farouk Systems, Inc. 401(k) Plan
Houston, TXManufacturing686 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$731Employer $ per active participant
$1,259Employee $ saved per active participant
0.32%Direct admin cost, % of plan assets
$15.4MNet plan assets, end of year
–Average balance per account (account count looks misreported)
Score breakdown
- Employer generosity5.5 / 5011th percentile for employer $ per participant
- Low cost9.7 / 2539th percentile for low admin cost vs. same-size plans
- Employee saving0.8 / 155th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-10 pts1 issue reported on the filing
Total score9 / 100 · Grade F
This plan vs. peers
Peers: Manufacturing plans with 500–2,499 active participants (2,376 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 11th |
| Lower admin cost | 39th |
| Employee saving | 5th |
| Peers that auto-enroll | 59% |
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Red flags from the filing
Benefits not paid when due: the plan reported failing to pay some benefits on time.
What to do if you're in this plan
- Farouk Systems put in about $731 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.
- 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 | $501,656 |
| Participant (employee) contributions | $864,380 |
| Other contributions (incl. rollovers in) | $67,162 |
| Administrative expenses paid from the plan | $45,905 |
| Investment advisory & management fees | $39,055 |
| Benefits paid out | $1,271,482 |
| Net assets, start / end of year | $13.6M / $15.4M |
| Active participants, start / end of year | 604 / 769 |
| Participants with account balances | 310 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Ryan&mann LLC |
Largest service providers (Schedule C)
| Raymond James Financial Services | $32,149 reported compensation |
| LPL Financial LLC | $6,906 reported compensation |
| Fidelity Investments Institutional | $6,850 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251007161400NAL0008515216001, received 2025-10-07, EIN 76-0206566, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.