Gusto does not offer IRA benefits, but if your company manages one through a third party, payroll admins can add the benefit to Gusto. This lets you collect employee contributions through payroll deductions, and we'll calculate company and employee taxes.
Deducted funds remain in the company bank account for you to transfer to your IRA provider.
A Roth IRA is an individual retirement account that allows an employee to set aside post-tax income up to a specified amount each year. Learn more about Roth IRA contribution limits from the IRS.
Set up and payments
Reporting
A Simplified Employee Pension Individual Retirement Arrangement (SEP-IRA) is a tax-deferred retirement savings plan which allows only the employer to contribute. It's often used by small businesses as an alternative to a 401(k), due to its relatively low operating cost. Learn more about contribution limits from the IRS.
SEP-IRA contributions are not reported on an employee's W-2. Your SEP-IRA provider is responsible for IRS reporting, including Form 1099-R and Form 5498.
Before you start, you'll need:
SEP-IRA plans are not managed by Gusto, but you can add the external benefit to your Gusto account for payroll purposes. When creating the benefit, be sure to enter the contribution limits for the year so that the benefit isn't over-applied on payroll.
Benefit payments
Questions about your retirement plan?
The savings incentive match plan (Simple IRA) is a tax-deferred retirement savings plan for employees. Learn more about Simple IRA benefits and requirements on our blog.
The maximum contribution is $15,500 in 2023. If your plan allows catch-up contributions, employees age 50 or older can make additional contributions up to $3,500 for a total of $19,000.
When you enter a percentage for Simple IRA contributions, this is based on taxable wages.
Before you start, you'll need:
The next time you run payroll, company and employee contributions will be listed on employee paystubs. You can return to the Benefits section of your admin account anytime to add, remove, or change employee deductions or the plan details.
Benefit payments
Questions about your retirement plan?
Interested in offering your team retirement benefits with Gusto? Check out our 401(k) offerings.