Rackspace, US Inc. 401(k) Review & Grade
Rackspace US, Inc. 401(k) Plan
San Antonio, TXManagement of Companies1,790 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$3,713Employer $ per active participant
$10,921Employee $ saved per active participant
0.06%Direct admin cost, % of plan assets
$404.8MNet plan assets, end of year
$101,795Average balance per account
Score breakdown
- Employer generosity31.9 / 5064th percentile for employer $ per participant
- Low cost21.2 / 2585th percentile for low admin cost vs. same-size plans
- Employee saving13.0 / 1587th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score73 / 100 · Grade B
This plan vs. peers
Peers: Management of Companies plans with 500–2,499 active participants (172 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 64th |
| Lower admin cost | 85th |
| Employee saving | 87th |
| Peers that auto-enroll | 58% |
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Red flags from the filing
Corrective distributions: the plan refunded $5,904 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Rackspace, US put in about $3,713 per active participant, more than the typical peer ($2,492). 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 auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- 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 | $6,644,771 |
| Participant (employee) contributions | $19,543,344 |
| Other contributions (incl. rollovers in) | $4,624,604 |
| Administrative expenses paid from the plan | $227,370 |
| Contract administrator fees | $227,370 |
| Benefits paid out | $57,998,970 |
| Net assets, start / end of year | $380.9M / $404.8M |
| Active participants, start / end of year | 1,929 / 1,650 |
| Participants with account balances | 3,977 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Forvis Mazars LLP |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $227,370 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251014171128NAL0001718483001, received 2025-10-14, EIN 74-2900680, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.