Southwest Airlines Co. 401(k) Review & Grade
Southwest Airlines Co. Retirement Savings Plan
Dallas, TXTransportation & Warehousing71,020 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$6,783Employer $ per active participant
$6,969Employee $ saved per active participant
0.03%Direct admin cost, % of plan assets
$17.0BNet plan assets, end of year
$199,158Average balance per account
Score breakdown
- Employer generosity44.4 / 5089th percentile for employer $ per participant
- Low cost21.5 / 2586th percentile for low admin cost vs. same-size plans
- Employee saving12.0 / 1580th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score85 / 100 · Grade A
This plan vs. peers
Peers: Transportation & Warehousing plans with 10,000+ active participants (46 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 89th |
| Lower admin cost | 86th |
| Employee saving | 80th |
| Peers that auto-enroll | 30% |
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Red flags from the filing
Corrective distributions: the plan refunded $13,960 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Southwest Airlines put in about $6,783 per active participant, more than the typical peer ($1,415). 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 | $481,719,433 |
| Participant (employee) contributions | $494,931,706 |
| Other contributions (incl. rollovers in) | $35,115,581 |
| Administrative expenses paid from the plan | $3,597,092 |
| Investment advisory & management fees | $43,923 |
| Other admin expenses | $30,225 |
| Benefits paid out | $1,926,663,466 |
| Net assets, start / end of year | $9.9B / $17.0B |
| Active participants, start / end of year | 67,820 / 74,221 |
| Participants with account balances | 85,318 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Cbiz Cpas P.C. |
| Employer stock held by plan | $607,135,951 |
Largest service providers (Schedule C)
| Empower Annuity Insurance Company | $3,452,920 reported compensation |
| Cbiz Cpas P.C. | $67,400 reported compensation |
| State Street Global Advisors Trust | $31,250 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250924095327NAL0008455920001, received 2025-09-24, EIN 74-1563240, plan #004, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.