Cengage Learning, Inc. 401(k) Review & Grade
The Cengage Learning, Inc. 401(k) Savings Plan
Independence, KYInformation3,240 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$3,390Employer $ per active participant
$9,465Employee $ saved per active participant
0.07%Direct admin cost, % of plan assets
$660.1MNet plan assets, end of year
$132,417Average balance per account
Score breakdown
- Employer generosity23.7 / 5047th percentile for employer $ per participant
- Low cost17.2 / 2569th percentile for low admin cost vs. same-size plans
- Employee saving8.6 / 1558th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score50 / 100 · Grade C
This plan vs. peers
Peers: Information plans with 2,500–9,999 active participants (60 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 47th |
| Lower admin cost | 69th |
| Employee saving | 58th |
| Peers that auto-enroll | 63% |
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Red flags from the filing
Corrective distributions: the plan refunded $1,010 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Cengage Learning put in about $3,390 per active participant, below the typical peer ($3,691). 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.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- 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 | $10,980,958 |
| Participant (employee) contributions | $30,660,360 |
| Other contributions (incl. rollovers in) | $4,234,875 |
| Administrative expenses paid from the plan | $433,008 |
| Contract administrator fees | $300 |
| Investment advisory & management fees | $239,735 |
| Benefits paid out | $60,279,265 |
| Net assets, start / end of year | $595.6M / $660.1M |
| Active participants, start / end of year | 3,420 / 3,059 |
| Participants with account balances | 4,985 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Cohnreznick LLP |
Largest service providers (Schedule C)
| Fidelity Investments Institutional | $163,348 reported compensation |
| Strategic Advisors, Inc. | $125,210 reported compensation |
| Capfinancial Partners, LLC. | $114,525 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251006090906NAL0008520498001, received 2025-10-06, EIN 59-2124491, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.