401(k) plan fees are being updated. Your notification email includes the specific changes and effective date that apply to your account. No other aspects of your 401(k) — such as investment selections, contribution amounts, or employer contributions — are affected.
We periodically update our pricing to reflect the cost of managing and administering retirement plans. This update simply moves your account to our standard, current pricing structure.
There are two fees that may apply to your 401(k) account:
Annual account fee: The annual account fee is based on your 401(k) account balance, calculated as a percentage of assets under management (AUM), which is charged by Gusto Investment Services, LLC. While this fee is usually paid by participants, your employer may choose to cover all or a portion of these fees.
Active participant fee: This is an administrative account fee that is paid to Gusto Retirement Services, LLC. While this fee is typically paid by employers, all or a portion may be passed on to you.
You can find the specific fees that apply to your account within the email notification you received.
Your annual account fee is calculated and deducted on a monthly basis, based on your balance on the last day of the calendar month:
Divide the annual fee percentage by 12.
Multiply that monthly rate by your month-end account balance.
That amount is deducted from your account.
For example: With a 0.25% annual account fee and a $10,000 month-end balance, the monthly deduction would be approximately $2.08.
Learn more about how your 401(k) annual account fee is calculated.
You can view your monthly fee deductions in your account:
On the web: Go to your dashboard and navigate to Transactions
On the Gusto mobile app: Check Recent transactions on the Home screen
Your pricing effective date is included in your notification email. You'll receive at least 30 days' notice before the change takes effect.
No. This update only affects the fees outlined in your notification email. The following are not affected:
Your investment selections
Your contribution amounts
Any employer contributions
If you're a former participant with a positive account balance, the annual account fee change applies to your account as well.
No action is required. You do not need to make any changes to your account.