You can move money out of your Gusto individual retirement account (IRA) by requesting a cash withdrawal or transferring funds to another financial institution. This article walks you through both options.
Before requesting a distribution (withdrawal), decide which type of distribution you want. Some distribution types may result in IRS penalties, which could affect your decision.
From your Gusto IRA, you can distribute funds to yourself or transfer or rollover your funds to another IRA or qualified retirement plan with a different provider.
To begin, choose the path that matches how you signed in, then follow the steps.
Sign in to Gusto and go to Benefits > Active Benefits > 401(k) > Manage.
Go to the Move money tab and select Take money out. From there, you can choose to access your funds in cash or consolidate your accounts through an IRA transfer.
Sign in at the Gusto Retirement sign-in page.
Go to Money movement in the main menu, then select Move money out. From there, you can choose to access your funds in cash or consolidate your accounts through an IRA transfer.
Note: If you also have a 401(k) account, you may see alternate withdrawal options. Learn about 401(k) withdrawal options.
To withdraw your funds in cash, follow these steps.
Select Access funds.
Enter the purpose and the amount you want to remove from your account.
Review the IRA cash distribution option for important information about your withdrawal. If you want to proceed, select Select.
Read the tax and delivery disclosures, then select Start to begin the IRA distribution application. You need to complete the following:
Confirm your account and contact information.
Enter the distribution reason.
Select the account(s) you want to remove funds from.
Enter the withdrawal type (early distribution or withdrawal with disability exemption).
Enter the amount you want to withdraw.
Elect your federal and state tax withholding.
Select Submit request. You'll get a confirmation number and information about processing and delivery.
Note: The purpose entered in step 2 is not used when generating your Form 1099-R and is not saved once you move past that screen.
To complete an IRA rollover or transfer to another financial institution, follow these steps.
Select Consolidate accounts.
In the IRA transfer or rollover card, select Select.
Choose how you want to move your IRA funds. To complete an IRA-to-IRA transfer or rollover to an eligible retirement plan, select Move funds to another financial institution.
Verify your personal information and select Save and continue. Then select or enter a reason for transferring or rolling over your money.
Select the IRA you want to transfer or roll over funds from. You can choose a partial or full transfer or rollover. Select Save and continue.
Select the account type and complete the check details for your new financial institution. You need to provide the following:
Financial institution name — the name of the institution where the funds are going.
Account type — the type of account you are transferring or rolling over to (like IRA, 401(k), and more).³
Check payable to — how the check should read (like Fidelity FBO Jon Smith).
Memo line — any additional details the other financial institution requires.
Review and confirm the information for the transfer or rollover. You can submit your request or go back and make updates.
Once your request is finalized, you'll get a confirmation email. It generally takes 2 – 3 weeks for the request to process and an additional 7 – 10 business days for the check to be mailed.
For a direct transfer or rollover, the check is mailed to your address on file. You need to forward the check to your new financial institution.¹ ²
This article is for informational purposes only and is not to be construed as tax advice. For more information, consult a qualified tax advisor.
¹ If your request is going to a foreign address, based on your citizenship, you need to upload Form W-8BEN or W-9 through the Shared Files folder in your account. There may also be mandatory federal withholding applied to your distribution.
² The rollover method described in this article is not a taxable event. It is reported to the IRS as a direct rollover, and you'll get a Form 1099-R with a code G in Box 7 indicating the direct rollover.
³ If you are requesting a transfer to another IRA account, you need to provide us with a Letter of Acceptance from the new financial institution and upload it to your Shared Files folder.