Employees can use this article to learn about Gusto IRA eligibility and contribution limits, how to open a Gusto IRA, connect a bank account, make contributions, and understand tax implications.
Important: You must already be a Gusto 401(k) participant to open a Gusto IRA.
An IRA is a long-term savings account that lets you contribute earned income toward retirement. A Gusto IRA may be a good fit if you want to save more for retirement in addition to your employer-sponsored 401(k).
When you open a Gusto IRA, you can make traditional (pre-tax) or Roth (post-tax) contributions. The main difference is when you pay taxes — traditional contributions may be tax-deductible now, while Roth contributions are made with after-tax dollars but can grow tax-free.
Learn more about traditional vs. Roth IRA contributions.
Almost anyone who receives taxable earned income can contribute to a traditional IRA, although your income and participation in an employer-sponsored retirement plan will determine if you can deduct your contribution. Your ability to contribute to a Roth IRA depends on your modified adjusted gross income (MAGI).
Review income limits for Roth and traditional IRAs.
If you have little or no taxable income but are married and file a joint tax return, your spouse's eligible compensation can be used to meet the income requirement to contribute to an IRA on your behalf. Your combined compensation must be enough to cover both your contribution and your spouse's.
For example, if you each had $5,000 in eligible compensation for a combined total of $10,000, the maximum you could contribute across both IRAs would be $10,000. However, if you had $5,000 and your spouse had $15,000 — a combined $20,000 — you could each contribute up to the annual limit of $7,000, for a total of $14,000 (plus an additional $1,000 each if you were both 50 or older by the end of the year).
The Internal Revenue Service (IRS) sets annual contribution limits for IRAs. These limits may change each year based on cost-of-living adjustments.
The maximum you can contribute across all traditional (pre-tax) IRAs and Roth IRAs is $7,000. If you're 50 or older, you can make an additional $1,000 catch-up contribution for a total of $8,000.
The maximum you can contribute across all traditional (pre-tax) IRAs and Roth IRAs is $7,500. If you're 50 or older, you can make an additional $1,100 catch-up contribution for a total of $8,600.
A few more things to keep in mind:
Your IRA contribution for the year cannot exceed your eligible taxable compensation for that year. For example, if your eligible compensation is $4,000, your contribution is limited to $4,000 regardless of the IRS limit.
Contribution limits apply across all IRAs in your name. We cannot monitor contributions made to external IRA accounts, so make sure to track your overall contributions across all accounts.
IRA contribution limits are separate from 401(k) contribution limits.
If you participate in a state mandate plan (like CalSavers or Illinois Secure Choice), those contributions go into a Roth IRA and count toward your annual IRA limit.
Important: The total contribution amount shown in your dashboard does not include contributions made to IRAs outside Gusto Retirement.
To open a Gusto IRA, 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 dashboard, follow these steps to open a Gusto IRA.
Start your IRA application – Click Open an IRA in the left-hand menu.
Complete your setup
Enter or confirm your personal details and beneficiaries.
Choose your investment portfolio.
Once finished, your new IRA and any existing 401(k) accounts will appear in this single, unified dashboard.
Before you can make contributions, you need to connect a bank account.
To connect a bank account, follow these steps.
Sign in to your Gusto Retirement dashboard and go to your contributions using one of these options. Learn more about SSO.
Sign in to Gusto and go to Benefits > Active Benefits > 401(k) > Manage.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
Sign in directly at the Gusto Retirement sign-in page.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
Open the Gusto Retirement mobile app and sign in.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
If you have more than one account type with Gusto Retirement, select IRA in the dropdown that appears.
Click the link to add a bank account.
Choose how you want to add your banking information — instant verification or manual verification via micro-deposits — then follow the prompts.
Note: If you add your banking information manually, there may be a 2–4 day verification period.
Update your bank information
To update your bank account information:
Sign in to your Gusto Retirement dashboard using one of these options. Learn more about SSO.
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.
Go to Settings.
Select Personal settings.
Click Bank accounts.
Once your bank account is connected, you can set your contribution preferences.
Sign in to your Gusto Retirement dashboard and go to your contributions using one of these options. Learn more about SSO.
Sign in to Gusto and go to Benefits > Active Benefits > 401(k) > Manage.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
Sign in directly at the Gusto Retirement sign-in page.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
Open the Gusto Retirement mobile app and sign in.
Then, select the Contributions tab, or from the Overview page, scroll to the Contributions section and select Manage.
If you have more than one account type with Gusto Retirement, select IRA in the dropdown that appears.
Click the desired IRA account (traditional or Roth) and your bank account.
Select the current year in the Tax year section.
Enter the contribution amount and frequency (One-time or Monthly).
Click Submit.
Track your progress toward the annual limit using the Projected year contributions timeline in your dashboard. Once you reach the annual limit for a given tax year, contributions for that tax year will be suspended.
A carryback contribution lets you designate contributions made in the current year as applying to the previous tax year. This means even if you didn't make a contribution before the end of the tax year, you may still be able to contribute and benefit from the associated tax advantages. To be eligible, you must have earned taxable income during the tax year the contribution applies to.
To make a carryback contribution, follow these steps.
Go to your contributions using one of these options:
Select the Contributions tab.
From the Overview page, scroll to the Contributions section and select Manage.
If you have more than one account type with Gusto Retirement, select IRA in the dropdown that appears.
Choose the desired IRA account (traditional or Roth) and your bank account.
Select the previous year in the Tax year section.
Enter the contribution date and amount.
Click Submit.
Note: If you want to make both a traditional and Roth IRA carryback contribution, you need to complete this process separately for each account type. If the contribution causes the total for the tax year to exceed the IRA limit, you'll see a message notifying you of the excess.
Traditional IRA contributions may not be fully deductible if you or your spouse participates in another retirement plan at work.
Roth IRA contributions may be limited if your income exceeds a certain level.
Visit the IRS site to learn more about IRAs.
Consider consulting a qualified financial adviser or tax professional for advice specific to your situation. The information provided here is general in nature and for informational purposes only. It is not a substitute for specific tax, legal, or financial advice that considers all relevant facts and circumstances.