Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: BradRamsey Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25239  
Subject: How to read a 401(K) Summary Annual Report? Date: 12/18/2001 11:18 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
The annual reports are filed with the U.S. Department of Labor's Pension and Welfare Benefits Administration, as required under the Employer Retirement Income Security Act of 1974 (ERISA).

The summary contains a Basic Financial Statement and details on how to obtain the full annual report.

A specific example of the Basic Financial Statement:

Participant and beneficiaries: 35,496

Income: $144,322,272
employer contributions: $38,799,742
employee contributions: $171,869,636
rollover contributions: $64,452,274
investments earnings: -$130,799,380

Plan Expenses: $30,709,194
administrative expenses: $91,388
benefits paid: $30,498,680
other: $119,126

Plan Assets:
12/31/2000: $920,641,990
01/01/2000: $802,783,130
difference: $117,858,860

Questions:
1) I notice Income minus Expenses is $113,613,078. I thought this should match the difference in the plan assets. Why not?

2) The average of the start and end assets is $861,712,560. The investment loss is $130,799,380 or about 15%. Does this mean the average account lost approximately 15%?

3) The employer match is $1500. Employer contributions divided by this match is about 25,866 persons. Does this mean there are roughly 10,000 beneficiaries? Who is a beneficiary?

4) The employee contributions divided by 25,866 persons is about $6,600. So is that a fair estimate of the average employee contribution?

5) Any thing I should be checking or can conclude form this report?

Thanks!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

2.1: The Labor Pool Problem
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement