Nordstrom, Inc. 401(k) Review & Grade
Nordstrom 401k Plan
Seattle, WARetail Trade58,241 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$1,286Employer $ per active participant
$3,166Employee $ saved per active participant
0.27%Direct admin cost, % of plan assets
$4.3BNet plan assets, end of year
$41,907Average balance per account
Score breakdown
- Employer generosity39.4 / 5079th percentile for employer $ per participant
- Low cost2.9 / 2511th 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-3 pts1 issue reported on the filing
Total score62 / 100 · Grade B
This plan vs. peers
Peers: Retail Trade plans with 10,000+ active participants (124 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 79th |
| Lower admin cost | 11th |
| Employee saving | 84th |
| Peers that auto-enroll | 32% |
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Red flags from the filing
Corrective distributions: the plan refunded $7,793 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Nordstrom put in about $1,286 per active participant, more than the typical peer ($689). 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 (0.27% of assets) are well above similar-size plans (0.09%). 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 | $74,921,489 |
| Participant (employee) contributions | $184,391,976 |
| Other contributions (incl. rollovers in) | – |
| Administrative expenses paid from the plan | $11,090,844 |
| Investment advisory & management fees | $6,299,893 |
| Other admin expenses | −$8,050 |
| Benefits paid out | $363,147,820 |
| Net assets, start / end of year | $3.9B / $4.3B |
| Active participants, start / end of year | 58,225 / 58,257 |
| Participants with account balances | 102,382 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Bdo USA, P.C. |
| Employer stock held by plan | $68,481,575 |
Largest service providers (Schedule C)
| Alight Solutions LLC | $3,473,678 reported compensation |
| Alight Financial Advisors, LLC | $2,910,679 reported compensation |
| William Blair Investment Mgmt LLC | $2,679,203 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250801124051NAL0007172657001, received 2025-08-01, EIN 91-0515058, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.