As a Gusto 401(k) plan sponsor or administrator, you may have questions about managing your plan. This article answers our top plan administrator FAQs for active plans. If you are setting up a new plan, see our top FAQs in onboarding instead.
You can change some plan provisions, like eligibility and employer-matching contribution levels, at any time. Reach out to our Retirement Sponsor Support team to get started.
Compliance testing is testing the Internal Revenue Service (IRS) requires to make sure plans are offered to employees on a nondiscriminatory basis. This means highly compensated employees cannot benefit from the plan more than other team members.
Automatic enrollment is a common 401(k) plan feature that helps team members who take no action on plan enrollment save for retirement. All Gusto 401(k) plans include this feature.
Here's how it works:
Participants get a notice of the automatic contribution arrangement before the plan start date or the date they become eligible
Participants who do not enroll on their own or opt out are automatically enrolled at the plan's default contribution rate when they become eligible
To change your payroll provider, choose the path that matches how you signed in.
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 401(k) administrator dashboard, go to the Payroll tab at least one week before you run payroll with your new provider. We will send you instructions through the dashboard to make the transition smooth.
Note: Changing to or from Gusto or a Gusto Embedded payroll provider (HiBob or HR for Health) can change how your Gusto 401(k) plan is managed. Learn more about payroll integrations.
If contributions are missed or late during a payroll run, the IRS provides guidance for correcting these operational errors through the Employee Plans Compliance Resolution System.
To update your company info or plan administrators, choose the path that matches how you signed in.
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 401(k) administrator dashboard, go to the Settings tab to update your:
Entity name
Employer identification number (EIN)
Entity type
Address and phone number
Plan administrators
Important: Name and EIN changes require supporting documentation and approval from the plan's trustee through their Gusto Retirement dashboard.
With Gusto Retirement, your plan needs to have:
An 18 – 21 age minimum requirement
A 0, 3, 6, or 12 month service requirement
All part-time, seasonal, intern, and full-time employees who meet these requirements are eligible to participate in the plan.
You need to file Form 5500 with the IRS each year to report your plan's activity.
As a plan sponsor, you need to meet deadlines each year for reporting requirements, tax forms, and employee notices. Here are the key deadlines to keep in mind.
Jan. 1 — Start of 401(k) Safe Harbor status for plans amending to Safe Harbor (deadline to amend is Nov. 30 of the previous year)
Mar. 15 — ADP/ACP corrections deadline for ACA plans
Apr. 15 — Tax filing deadline, unless an extension is filed (10 business days before tax filing to elect profit sharing)
Jun. 30 — ADP/ACP corrections deadline for EACA plans
Jul. 31 — 5500 filing deadline unless an extension is filed
Oct. 1 — Deadline for new plans to elect 401(k) Safe Harbor status
Oct. 15 — 5500 filing deadline with an extension
Nov. 2 — Deadline to notify employees with SIMPLE IRA plans
Nov. 15 — Last day we can accept new plan start dates for the following year
Nov. 20 — Deadline to make Safe Harbor changes for existing plans for the upcoming year
Dec. 15 — Deadline to make Top Heavy corrections
Dec. 31 — Deadline to change profit-sharing formula, and when compliance testing for the plan year ends