Spotify USA Inc. 401(k) Review & Grade
Spotify USA Inc. 401(k) Profit Sharing Plan and Trust
New York, NYProfessional, Scientific & Technical Services3,698 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$4,980Employer $ per active participant
$18,260Employee $ saved per active participant
0.11%Direct admin cost, % of plan assets
$565.8MNet plan assets, end of year
$110,515Average balance per account
Score breakdown
- Employer generosity38.5 / 5077th percentile for employer $ per participant
- Low cost13.6 / 2555th percentile for low admin cost vs. same-size plans
- Employee saving14.1 / 1594th percentile for employee $ per participant
- Plan features0 / 10No auto-enrollment or default investment reported
- Red-flag deductions-3 pts1 issue reported on the filing
Total score63 / 100 · Grade B
This plan vs. peers
Peers: Professional, Scientific & Technical Services plans with 2,500–9,999 active participants (231 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 77th |
| Lower admin cost | 55th |
| Employee saving | 94th |
| Peers that auto-enroll | 47% |
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Red flags from the filing
Corrective distributions: the plan refunded $31,906 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Spotify USA put in about $4,980 per active participant, more than the typical peer ($2,951). 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.
- 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 | $18,415,707 |
| Participant (employee) contributions | $67,525,074 |
| Other contributions (incl. rollovers in) | $8,523,693 |
| Administrative expenses paid from the plan | $553,200 |
| Other admin expenses | $553,200 |
| Benefits paid out | $52,963,083 |
| Net assets, start / end of year | $453.3M / $565.8M |
| Active participants, start / end of year | 4,115 / 3,281 |
| Participants with account balances | 5,120 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Crowe LLP |
Largest service providers (Schedule C)
| The Vanguard Group, Inc. | $295,873 reported compensation |
| Vanguard Advisers Inc. | $153,691 reported compensation |
| Newfront Retirement Services Inc | $79,612 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251014135500NAL0001459731001, received 2025-10-14, EIN 80-0555431, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.