When setting up a new Gusto 401(k) plan, you can include a service requirement that determines how long employees need to work for your business before they can enroll.
A special entry provision waives this service requirement for existing employees, letting team members who would not typically be eligible enroll as of the plan start date.
For example, you might choose a three-month service requirement for employees hired after the plan starts, but zero months of service for anyone already working for you before the plan begins. This article explains how to add or remove special entry before your plan starts.
If you did not include special entry in your original plan design, you can add it before the plan start date.
Because all eligible employees must get applicable notifications about the 401(k) plan at least 30 days prior to the start date, adding special entry may push out your plan's start date. The new date will be delayed to allow for the required 30-day notices to be sent to newly eligible employees.
If you previously elected to include special entry, you can remove it before the plan start date.
To remove special entry, follow these steps:
Request the change through your Onboarding Specialist or by emailing [email protected].
The plan's trustee will need to approve the change by completing a task in their 401(k) sponsor dashboard.
Communicate the change directly to any affected employees. Gusto Retirement does not send notices for this amendment.
Important: Depending on the timing of the change, invite emails may have already been sent to employees. It is your responsibility to let affected employees know they are no longer eligible under the updated plan terms.
Once those employees meet the plan's service requirement, they will be reinvited automatically.
Note: After the plan start date has passed, employees are eligible to participate, and the special entry provision cannot be removed.