Otelco Telephone LLC 401(k) Review & Grade
Otelco Telephone LLC Savings Trust
Oneonta, ALProfessional, Scientific & Technical Services642 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$2,353Employer $ per active participant
$4,372Employee $ saved per active participant
0.41%Direct admin cost, % of plan assets
$39.6MNet plan assets, end of year
$64,050Average balance per account
Score breakdown
- Employer generosity19.5 / 5039th percentile for employer $ per participant
- Low cost7.3 / 2529th percentile for low admin cost vs. same-size plans
- Employee saving3.4 / 1522th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
Total score40 / 100 · Grade D
This plan vs. peers
Peers: Professional, Scientific & Technical Services plans with 500–2,499 active participants (1,469 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 39th |
| Lower admin cost | 29th |
| Employee saving | 22th |
| Peers that auto-enroll | 48% |
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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
- Otelco Telephone put in about $2,353 per active participant, below the typical peer ($3,082). 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 (0.41% 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.
- 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 | $1,510,774 |
| Participant (employee) contributions | $2,806,921 |
| Other contributions (incl. rollovers in) | $1,482,427 |
| Administrative expenses paid from the plan | $150,825 |
| Contract administrator fees | $150,825 |
| Benefits paid out | $3,609,232 |
| Net assets, start / end of year | $33.2M / $39.6M |
| Active participants, start / end of year | 636 / 648 |
| Participants with account balances | 619 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Bmss,llc |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $150,824 reported compensation |
| Commonwealth Financial Network | $71,568 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250724084002NAL0005676208001, received 2025-07-24, EIN 52-2126398, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.