Townsend Tree Service Company, Inc. 401(k) Review & Grade
The Townsend Corporation Hourly Employees Retirement Savings Plan
Muncie, INConstruction1,726 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$29Employer $ per active participant
$151Employee $ saved per active participant
0.43%Direct admin cost, % of plan assets
$4.8MNet plan assets, end of year
–Average balance per account (account count looks misreported)
Score breakdown
- Employer generosity1.8 / 504th percentile for employer $ per participant
- Low cost6.9 / 2528th percentile for low admin cost vs. same-size plans
- Employee saving0.1 / 151th percentile for employee $ per participant
- Plan features0 / 10No auto-enrollment or default investment reported
Total score9 / 100 · Grade F
This plan vs. peers
Peers: Construction plans with 500–2,499 active participants (498 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 4th |
| Lower admin cost | 28th |
| Employee saving | 1th |
| Peers that auto-enroll | 44% |
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Red flags from the filing
No red flags were reported on this filing's compliance questions.
What to do if you're in this plan
- Townsend Tree Service Company put in about $29 per active participant, below the typical peer ($1,672). 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 (0.43% 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 | $50,235 |
| Participant (employee) contributions | $259,911 |
| Other contributions (incl. rollovers in) | $75,617 |
| Administrative expenses paid from the plan | $21,638 |
| Contract administrator fees | $21,638 |
| Benefits paid out | $1,315,251 |
| Net assets, start / end of year | $5.2M / $4.8M |
| Active participants, start / end of year | 1,577 / 1,876 |
| Participants with account balances | 118 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Blue & Company, LLC |
Largest service providers (Schedule C)
| First Merchants Trust Company | $21,638 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251009113454NAL0003529123001, received 2025-10-09, EIN 35-1038926, plan #004, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.