Applied Materials, Inc. 401(k) Review & Grade
Applied Materials, Inc. Employee Savings & Retirement Plan
Santa Clara, CAManufacturing15,132 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$5,767Employer $ per active participant
$15,282Employee $ saved per active participant
0.04%Direct admin cost, % of plan assets
$6.2BNet plan assets, end of year
$302,223Average balance per account
Score breakdown
- Employer generosity27.0 / 5054th percentile for employer $ per participant
- Low cost20.1 / 2581th percentile for low admin cost vs. same-size plans
- Employee saving12.6 / 1584th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score57 / 100 · Grade C
This plan vs. peers
Peers: Manufacturing plans with 10,000+ active participants (151 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 54th |
| Lower admin cost | 81th |
| Employee saving | 84th |
| Peers that auto-enroll | 69% |
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Red flags from the filing
Benefits not paid when due: the plan reported failing to pay some benefits on time.
Corrective distributions: the plan refunded $71,197 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Applied Materials put in about $5,767 per active participant, more than the typical peer ($5,480). 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.
- 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 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 | $87,266,339 |
| Participant (employee) contributions | $231,238,633 |
| Other contributions (incl. rollovers in) | $29,859,680 |
| Administrative expenses paid from the plan | $1,988,001 |
| Contract administrator fees | $10,500 |
| Investment advisory & management fees | $1,450,425 |
| Other admin expenses | $20,000 |
| Benefits paid out | $349,536,222 |
| Net assets, start / end of year | $5.1B / $6.2B |
| Active participants, start / end of year | 14,940 / 15,323 |
| Participants with account balances | 20,399 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Baker Tilly US, LLP |
Largest service providers (Schedule C)
| Fidelity Investments Institutional | $517,576 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251006160244NAL0003773393001, received 2025-10-06, EIN 94-1655526, plan #333, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.