When you transfer your Gusto 401(k) plan to another provider or terminate it, billing does not stop right away. Here's how final billing works in each case.
Your plan is billed the month after service is provided (billed in arrears). This means your final invoice will arrive in the month after your last billing month — not the month the transfer or termination occurs.
When you transfer your plan to a new provider, the final billing month is the month in which plan assets are sent to the new provider. Your final invoice will be sent the following month.
Example: If the transfer takes place in February, your last invoice will be sent in March for February's fees.
For terminating plans, billing continues for three months from either the termination date or the date you submit your termination packet, whichever is later. Billing will not continue past the month all participant accounts are fully distributed (the service end date).
A plan provides their termination packet on Aug. 22 with a termination date of Dec. 1. Plan assets are fully distributed in March.
Termination date: Dec. 1
Submission date: Aug. 22
Service end date: Mar. 31
How billing applies:
Normal billing through the month of termination (Sep – Dec).
Billing for three months following termination (Jan – Mar).
Final invoice issued in April for the March fee.
A plan provides their termination packet on Mar. 31 with a termination date of the prior Jan. 31. The plan fully distributes all assets in May.
Termination date: Jan. 31
Submission date: Mar. 31
Service end date: May 30
How billing applies:
Normal billing through the month the packet was submitted (Jan – Mar).
Billing for two months following submission (Apr – May) — limited to two months since the plan was fully distributed within that time.
Final invoice issued in June for the May fee.
For more information, review details about invoicing and billing, or see our Terms of Service.