Watermark Retirement Communities, LLC 401(k) Review & Grade
Watermark Retirement Communities, LLC 401(k) Plan
Tucson, AZHealth Care & Social Assistance3,462 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$622Employer $ per active participant
$2,347Employee $ saved per active participant
0.89%Direct admin cost, % of plan assets
$53.8MNet plan assets, end of year
$17,552Average balance per account
Score breakdown
- Employer generosity23.0 / 5046th percentile for employer $ per participant
- Low cost1.4 / 256th percentile for low admin cost vs. same-size plans
- Employee saving6.8 / 1546th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score28 / 100 · Grade F
This plan vs. peers
Peers: Health Care & Social Assistance plans with 2,500–9,999 active participants (312 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 46th |
| Lower admin cost | 6th |
| Employee saving | 46th |
| Peers that auto-enroll | 38% |
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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 ($46,104 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $60,388 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Watermark Retirement Communities put in about $622 per active participant, below the typical peer ($800). 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 (0.89% of assets) are well above similar-size plans (0.12%). 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 | $2,153,624 |
| Participant (employee) contributions | $8,123,321 |
| Other contributions (incl. rollovers in) | $618,064 |
| Administrative expenses paid from the plan | $471,904 |
| Contract administrator fees | $322,807 |
| Investment advisory & management fees | $67,433 |
| Other admin expenses | $41,664 |
| Benefits paid out | $14,526,970 |
| Net assets, start / end of year | $51.7M / $53.8M |
| Active participants, start / end of year | 3,977 / 2,946 |
| Participants with account balances | 3,066 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Ludwig Klewer & Rudner PLLC |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $322,807 reported compensation |
| Merrill Lynch Pierce Fenner & Smith | $93,780 reported compensation |
| Watermark Retirement | $30,000 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251010130549NAL0007757345001, received 2025-10-10, EIN 86-0587483, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.