Zara USA, Inc. 401(k) Review & Grade
Zara USA & Related Companies 401(k) Plan
New York, NYRetail Trade2,960 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,013Employer $ per active participant
$2,234Employee $ saved per active participant
0.52%Direct admin cost, % of plan assets
$52.8MNet plan assets, end of year
$13,491Average balance per account
Score breakdown
- Employer generosity33.0 / 5066th percentile for employer $ per participant
- Low cost3.1 / 2512th percentile for low admin cost vs. same-size plans
- Employee saving8.4 / 1556th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
Total score55 / 100 · Grade C
This plan vs. peers
Peers: Retail Trade plans with 2,500–9,999 active participants (183 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 66th |
| Lower admin cost | 12th |
| Employee saving | 56th |
| Peers that auto-enroll | 42% |
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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
- Zara USA put in about $1,013 per active participant, more than the typical peer ($650). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- 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 (0.52% 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 | $2,997,980 |
| Participant (employee) contributions | $6,612,867 |
| Other contributions (incl. rollovers in) | $87,977 |
| Administrative expenses paid from the plan | $256,884 |
| Investment advisory & management fees | $75,928 |
| Benefits paid out | $7,294,634 |
| Net assets, start / end of year | $46.0M / $52.8M |
| Active participants, start / end of year | 2,675 / 3,244 |
| Participants with account balances | 3,910 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Grant Thornton LLP |
Largest service providers (Schedule C)
| John Hancock | $164,971 reported compensation |
| Mercer (US) Inc Mercer Investments | $75,928 reported compensation |
| Empower Annuity Insurance Company O | $15,985 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251216100053NAL0003965600001, received 2025-12-16, EIN 13-3471788, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.