Cotton on USA, Inc. 401(k) Review & Grade
Cotton on USA, Inc. 401(k) Profit Sharing Plan and Trust
Los Angeles, CAOther Services795 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$873Employer $ per active participant
$1,620Employee $ saved per active participant
0.95%Direct admin cost, % of plan assets
$9.5MNet plan assets, end of year
$9,204Average balance per account
Score breakdown
- Employer generosity19.9 / 5040th percentile for employer $ per participant
- Low cost1.8 / 257th percentile for low admin cost vs. same-size plans
- Employee saving5.4 / 1536th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-10 pts1 issue reported on the filing
Total score27 / 100 · Grade F
This plan vs. peers
Peers: Other Services plans with 500–2,499 active participants (333 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 40th |
| Lower admin cost | 7th |
| Employee saving | 36th |
| Peers that auto-enroll | 40% |
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Red flags from the filing
Late deposits: the filing says some employee contributions were not sent to the plan on time ($417,020 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
What to do if you're in this plan
- Cotton on USA put in about $873 per active participant, below the typical peer ($1,257). 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 (0.95% 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.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- The plan reported late deposits of employee contributions. Compare your pay stubs with your account statements, and contact the plan administrator if money shows up late.
- 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 | $693,977 |
| Participant (employee) contributions | $1,288,157 |
| Other contributions (incl. rollovers in) | – |
| Administrative expenses paid from the plan | $82,275 |
| Investment advisory & management fees | $284 |
| Benefits paid out | $1,400,660 |
| Net assets, start / end of year | $7.9M / $9.5M |
| Active participants, start / end of year | 804 / 786 |
| Participants with account balances | 1,030 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | JGD & Associates LLP |
Largest service providers (Schedule C)
| Adp, Inc. | $82,275 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251007051624NAL0004360129001, received 2025-10-07, EIN 27-0788480, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.