Headspace, Inc. 401(k) Review & Grade
Headspace 401(k) Plan
Santa Monica, CAEducational Services816 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$1,441Employer $ per active participant
$8,804Employee $ saved per active participant
0.08%Direct admin cost, % of plan assets
$59.1MNet plan assets, end of year
$58,361Average balance per account
Score breakdown
- Employer generosity27.6 / 5055th percentile for employer $ per participant
- Low cost19.9 / 2580th percentile for low admin cost vs. same-size plans
- Employee saving14.1 / 1594th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score52 / 100 · Grade C
This plan vs. peers
Peers: Educational Services plans with 500–2,499 active participants (144 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 55th |
| Lower admin cost | 80th |
| Employee saving | 94th |
| Peers that auto-enroll | 37% |
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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 ($20 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $1,751 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Headspace put in about $1,441 per active participant, more than the typical peer ($1,225). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- 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.
- 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 | $1,174,854 |
| Participant (employee) contributions | $7,179,912 |
| Other contributions (incl. rollovers in) | $802,886 |
| Administrative expenses paid from the plan | $42,687 |
| Contract administrator fees | $21,753 |
| Benefits paid out | $7,576,248 |
| Net assets, start / end of year | $49.8M / $59.1M |
| Active participants, start / end of year | 913 / 718 |
| Participants with account balances | 1,013 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Duffy Kruspodin, LLP |
Largest service providers (Schedule C)
| Newport Group, Inc. | $42,687 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250815132530NAL0024215602001, received 2025-08-15, EIN 46-1777570, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.