If you need to end or move your Gusto 401(k) plan, there are four options depending on your situation. The term for any of these changes is a service termination. Expand the sections below to find the option that fits your needs.
Choose this option if you want to permanently close your 401(k) plan — for example, if you are shutting down your business.
As part of the plan termination, we will help you distribute all funds to participants, complete any required compliance testing, and file the final Form 5500.
Important: If you terminate your plan, the IRS will not allow you to establish a new 401(k) plan within 12 months of the final liquidation date.
Learn more about closing your 401(k) plan.
Choose this option if you want to end your service with Gusto Retirement and move your plan to a new provider. Your plan will stay active with the IRS — it will just be with a different provider. No final Form 5500 is required.
Choose this option if you want to combine one Gusto 401(k) plan with another plan that is also at Gusto Retirement. The assets from the merging plan will transfer to the receiving Gusto 401(k) plan.
For example, if Gusto Plan A merges with Gusto Plan B, Gusto Plan A stops existing and a Form 5500 is filed indicating the plan merged into another. No further Form 5500 is filed for Plan A.
Learn more about internal mergers.
Choose this option if you want to combine a Gusto 401(k) plan with a plan that is not at Gusto Retirement. The plan assets will transfer to a receiving or successor plan outside of Gusto Retirement.
For example, if Gusto Plan A merges with New Provider Plan B, Gusto Plan A stops existing and a Form 5500 is filed indicating the plan merged into another. No further Form 5500 is filed for Plan A.
Learn more about external mergers.