Chegg, Inc 401(k) Review & Grade
Chegg 401(k) Savings Plan
Santa Clara, CAEducational Services682 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$6,642Employer $ per active participant
$16,393Employee $ saved per active participant
0.00%Direct admin cost, % of plan assets
$138.3MNet plan assets, end of year
$123,467Average balance per account
Score breakdown
- Employer generosity48.3 / 5097th percentile for employer $ per participant
- Low cost24.9 / 25100th percentile for low admin cost vs. same-size plans
- Employee saving15.0 / 15100th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score88 / 100 · Grade A
This plan vs. peers
Peers: Educational Services plans with 500–2,499 active participants (144 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 97th |
| Lower admin cost | 100th |
| Employee saving | 100th |
| Peers that auto-enroll | 37% |
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Red flags from the filing
Corrective distributions: the plan refunded $792 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Chegg put in about $6,642 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.
- 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 | $4,529,616 |
| Participant (employee) contributions | $11,180,190 |
| Other contributions (incl. rollovers in) | $957,409 |
| Administrative expenses paid from the plan | $2,549 |
| Other admin expenses | $2,549 |
| Benefits paid out | $14,190,291 |
| Net assets, start / end of year | $117.2M / $138.3M |
| Active participants, start / end of year | 729 / 635 |
| Participants with account balances | 1,120 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Silicon Valley Accountancy Corp |
Largest service providers (Schedule C)
| The Vanguard Group, Inc. | $3,299 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251015103411NAL0002152051001, received 2025-10-15, EIN 20-3237489, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.