After your request to terminate your Gusto 401(k) plan is processed, we review your plan's documentation, operations, and recordkeeping. The goal is to confirm there are no open issues before your employees take distributions from the plan. This review helps protect you and your employees by reducing the risk of problems after assets have already moved.
We review the plan before employee distributions begin. This helps us find and address issues upfront rather than after an employee has already requested a distribution.
If we find something that needs to be corrected, we will work with you to resolve it so the plan can be wound down in a compliant way.
Important: A plan termination or transfer can pause while required corrections are addressed.