When you terminate or transfer your Gusto 401(k) plan, contribution collection does not stop right away. This article explains when Gusto Retirement stops collecting contributions and what to do if 401(k) deductions still appear in your payroll system. Expand the sections below to learn more.
When you terminate or transfer your Gusto 401(k) plan, contribution collection does not stop immediately. The timeline depends on the "date of final payroll contribution" you specified in the termination or transfer package.
Gusto Retirement uses this date to determine when to stop collecting payroll contributions. The date you specify must be on or after the last date that Gusto Retirement will collect contributions.
To find this date, follow these steps:
Sign in to Gusto and go to Benefits. Under Savings, find 401(k) and select View, then select Manage 401(k)
Sign in directly at the Gusto Retirement sign-in page.
Once you're in your Gusto Retirement dashboard, go to Reports, then Contributions report. The report shows the last date Gusto Retirement will collect contributions for your plan.
After the final contribution date, Gusto Retirement will stop collecting contributions. Make sure your new provider collects any contributions due after that date. Confirm with your new provider that contributions are being collected correctly and work with your payroll vendor to update the relevant codes in their system.
Gusto Retirement will stop collecting contributions after the final date. You may also need to take additional steps with your payroll provider to stop payroll withholding on their end.
After Gusto Retirement stops collecting contributions, you may still see 401(k) deduction codes or other integration data in your payroll records. This does not necessarily mean contributions are still being sent to Gusto Retirement.
There are two common reasons this can happen:
Leftover integration data — After final contributions are made, deduction codes and other data from the Gusto Retirement integration may remain in your payroll system. These are residual records and do not represent active collections. Work with your payroll vendor to remove or update these codes.
Payrolls processed between your termination request and the effective date — If additional payrolls ran between when you completed the termination paperwork and the plan's effective termination date, deductions may have continued during that window. Once the effective date passes, Gusto Retirement stops collecting. Work with your payroll vendor to stop withholding 401(k) amounts going forward.
Important: If amounts were deducted from an employee's paycheck after the plan's termination date, work with your payroll vendor to correct the issue. Gusto Retirement would not have received these funds, so no correction is needed on the plan side.
Learn more about how billing works for a 401(k) plan transferring out of Gusto or terminating.