Cato Corporation 401(k) Review & Grade
The Cato Corporation 401(k)/profit Sharing Plan
Charlotte, NCRetail Trade2,717 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$405Employer $ per active participant
$871Employee $ saved per active participant
0.07%Direct admin cost, % of plan assets
$72.9MNet plan assets, end of year
$45,211Average balance per account
Score breakdown
- Employer generosity15.7 / 5031th percentile for employer $ per participant
- Low cost16.7 / 2567th percentile for low admin cost vs. same-size plans
- Employee saving2.2 / 1515th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score35 / 100 · Grade D
This plan vs. peers
Peers: Retail Trade plans with 2,500–9,999 active participants (183 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 31th |
| Lower admin cost | 67th |
| Employee saving | 15th |
| Peers that auto-enroll | 42% |
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Red flags from the filing
Corrective distributions: the plan refunded $162,452 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Cato put in about $405 per active participant, below the typical peer ($650). 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 | $1,099,121 |
| Participant (employee) contributions | $2,367,087 |
| Other contributions (incl. rollovers in) | $13,805 |
| Administrative expenses paid from the plan | $52,950 |
| Investment advisory & management fees | $35,000 |
| Benefits paid out | $10,854,407 |
| Net assets, start / end of year | $70.5M / $72.9M |
| Active participants, start / end of year | 2,642 / 2,792 |
| Participants with account balances | 1,612 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Forvis Mazars, LLP |
Largest service providers (Schedule C)
| Kestra Advisory Services %NFP | $35,000 reported compensation |
| Fidelity Investments Institutional | $17,950 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251009191221NAL0011573072001, received 2025-10-09, EIN 56-0484485, plan #002, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.