Gusto Help Center- 401(k) basic info for employees

What's a 401(k)?

A 401(k) is an employer-sponsored retirement plan that lets eligible employees save and invest part of their paycheck. Contributions are deducted from an employee's gross pay and put into a 401(k) account.

The maximum contribution an employee under 50 can make is $22,500 in 2023 ($20,500 in 2022). If the employee is over 50 they may make an additional catch-up contribution of $7,500 in 2023 ($6,500 in 2022).

Roth 401(k)

A Roth 401(k) is a post-tax employer-sponsored retirement plan that lets eligible employees save and invest part of their paycheck. Contributions are deducted from an employee's check after federal and state taxes are calculated. If the deduction is based on a percentage, we use gross pay to calculate the amount that will be deducted from the employee's net pay.

In some plans, the employer may also contribute by matching up to a certain percent of the employee's contribution. The maximum contribution an employee under 50 can make is $22,500 in 2023, and ($20,500 in 2022). If the employee is over 50 they may make an additional catch-up contribution of $7,500 in 2023 ($6,500 in 2022).

More 401(k) terms to know

Custodian: the financial institution holding the 401(k) funds.
Plan participant: an employee enrolled in the 401(k) plan.
Plan sponsor: the designated administrator in charge of the employer’s 401(k) plan.

View or change your 401(k)

Enroll in your company's 401(k)

Once you're eligible to participate in your company's 401(k), your 401(k) provider will notify you once you can opt in or out. Your company may have a waiting period that you must meet before you can participate—ask your company admin if you have questions.

View your 401(k) plan details

If you're enrolled in an integrated 401(k) plan with Guideline, Betterment, or Human Interest, you can view your plan's high-level details right from Gusto. To make changes or view your balances in more detail, sign in to your provider's website.

Sign in to your Gusto employee account.
Go to the Benefits tab.
Under "Savings & Philanthropy," click 401(k).
- If you don't see the 401(k) listed here, you may not yet be eligible to enroll, or you may have met the IRS annual contribution limit. Sign in to your provider's website to confirm.
View each tab of your dashboard for information about your 401(k) plan.

If you don't see a 401(k) in your Benefits tab, you may not be eligible to enroll yet. If you no longer see 401(k) deductions on your paystubs, you may have already met the annual IRS maximum contribution. Sign in to your 401(k) provider's website to make changes or to view more details.

For more info about your plan, contact your company 401(k) administrator.

Change your 401(k) contribution

Any changes must made directly on your 401(k) provider's website—check out steps to change your contribution in Guideline or Betterment, or contact your provider for more info.

Troubleshoot deductions

If your 401(k) is not listed Gusto or on your paystub, start here. This may be because:

Your plan may not have started yet—check your provider's online account to confirm the start date.
You may not yet be eligible for the benefit per your plan's eligibility settings. Ask your employer to find out when you'll be eligible to participate.
Your company may have run payroll before your enrollment or deduction change was processed.
Taxes are applied before deductions. You may have had $0 in net pay after taxes.
Reimbursements are not eligible for 401(k) deductions.
You may have reached the IRS annual contribution limit.
If you have taken out a loan from your 401(k), your repayment may be collected through payroll deductions (check the terms of your loan to confirm). These deductions will be taken post-tax.

For more help, sign in to your online account on your provider's website or call your 401(k) provider directly.