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Methodology

Data Collection

RetireGrader's plan analysis is built on DOL Form 5500 filings, which every employer retirement plan with 100 or more participants must file annually with the Department of Labor. These filings are public records available through EFAST2. Specific data sources for individual claims and figures are cited inline on each plan, guide, and calculator page.

Plan Metrics

Total Assets

Reported as end-of-year total plan assets from the Form 5500 Schedule H or Schedule I. This includes all investment holdings at fair market value.

Expense Ratio

Calculated as total administrative expenses divided by total plan assets. This captures the direct cost of plan administration as a percentage of assets. Note: this may differ from individual fund expense ratios within the plan, which are reported separately.

Participation Rate

Active participants divided by total participants. This indicates what percentage of eligible employees are actively contributing to the plan.

Assets per Participant

Total plan assets divided by total participants. This provides a rough average balance, though actual individual balances vary significantly based on tenure, contribution rates, and investment choices.

Limitations

Form 5500 data has several important limitations:

  • Filings typically lag 6 to 18 months behind current conditions
  • Small plans (under 100 participants) file abbreviated forms with less detail
  • Expense ratios reflect plan-level costs, not individual fund fees
  • Assets per participant is an average that masks wide individual variation
  • Plan mergers, acquisitions, and name changes can complicate year-over-year comparisons

Calculator Methodology

Our calculators use standard financial formulas with the following assumptions:

  • Compound interest calculated monthly
  • Constant rate of return (actual returns vary year to year)
  • No adjustment for taxes unless specifically noted
  • Social Security calculations based on published SSA reduction and credit formulas

Editorial Process

Plan analysis is generated from Form 5500 filings using documented formulas, then reviewed by the RetireGrader editorial team for accuracy, clarity, and compliance with our YMYL standards before publication. Long-form guides are researched with AI assistance and reviewed by an editor before they go live. Specific sources are cited inline where each claim is made.

Update Cadence

Plan metrics refresh as new Form 5500 filings are released to EFAST2 (typically a 6 to 18 month lag from the plan year end). Calculator assumptions and contribution-limit figures are updated annually when the IRS, SSA, and DOL publish new values for the coming year. Guides are reviewed when the underlying federal data or our methodology changes.

What This Analysis Does Not Cover

RetireGrader's plan profiles are a comparative tool, not a personal recommendation. They do not factor in your individual contribution rate, investment selection within the plan, expected tenure, household income, or tax situation. They are not a substitute for advice from a qualified financial advisor or fiduciary.

Editorial Team

For team credentials and editorial standards, see our about page and editorial guidelines.

Questions

For questions about our methodology, visit our contact page.