Welcome to your Gusto 401(k). You're a participant if you're an employee of a company with a Gusto 401(k) plan and you have met the plan's eligibility requirements. This guide covers the key things you need to know, from contributions and investments to fees and distributions. To understand the specific features of your plan, also review your Plan Design page and your Summary Plan Description (SPD), which details your plan's eligibility rules, contribution options, and other key terms.
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.
With the Gusto Retirement mobile app, you can manage your account from anywhere. The app is available for iPhone and Android. Learn more in the video below.
Your Gusto 401(k) is funded through payroll deductions based on the contribution rate you choose, or at the default deferral rate if you are auto-enrolled.
You can change your contribution rate as many times as you'd like, but changes need to be made one pay period in advance to take effect on the next payroll. Learn how to change your contribution rate.
Note: 401(k) plans cannot accept outside contributions directly from a bank. Your account can only be funded through payroll deductions.
Contributions will not appear in your account on payday. Your funds are typically fully deposited about 7 business days after your pay date. During that time, we are working with the designated payroll system to create deduction records, get funds, and execute trades based on your portfolio elections. Holidays may add to this timeline.
The Internal Revenue Service (IRS) sets an annual deferral limit. This is the maximum amount you can personally contribute across most retirement plans in a given year.
This limit applies to your pre-tax and Roth contributions to:
401(k) plans
403(b) plans
Starter 401(k) plans
Salary Reduction Simplified Employee Pension (SARSEP) plans
Contributions you get from your employer — like an employer match or profit sharing — do not count toward this limit.
Your contributions are invested based on the portfolio allocation you select. As your funds are invested, they may gain or lose value based on market performance.
If you were auto-enrolled and did not choose a portfolio, your money is invested in a Qualified Default Investment Alternative (QDIA). Learn more about the QDIA offered by Gusto Investment Services.
Gusto Investment Services offers 6 managed portfolios, and you can also build a custom portfolio from the full fund menu. You can update your portfolio allocation at any time. Learn how to change your portfolio.
Gusto Investment Services charges a fee based on your assets under management (AUM) while you have an account in your employer-sponsored plan. The AUM fee may vary depending on your plan's design. Refer to your Summary Plan Description for all plan-specific fees.
Depending on your plan’s terms, you may also be charged a $50 fee for in-service distributions, rollovers, or withdrawals taken after your employment ends, and a $25 fee for withdrawals of residual dividends.
If you leave your employer, you have a 90-day grace period before additional fees apply. After that, a $4-6 per month maintenance fee, charged by Gusto Retirement Services, LLC, will apply in addition to any AUM fee charged by Gusto Investment Services. Learn more about fees.
If you have an existing 401(k) or other eligible retirement account at another financial institution, you may be able to roll those funds into your Gusto 401(k) with no tax implications — if you have met the eligibility requirements.
Before starting, confirm that your other account is eligible. See the chart of eligible retirement accounts. If your account qualifies, follow these steps to start the inbound rollover process.
Important: You cannot roll over non-Roth after-tax assets into your Gusto 401(k).
To take a distribution from your 401(k), you need to meet specific requirements defined in your Summary Plan Description.
Common allowable reasons for a distribution include:
You no longer work for the company sponsoring the plan (or any of its affiliates) for any reason
You are 59½ or older and still employed — this is called an in-service distribution
Your company terminates the 401(k) plan
If you do not meet one of these conditions, you may still have options. You can explore whether you qualify for a 401(k) loan or a hardship withdrawal.
Investment advisory services for Gusto's 401(k) product (when 3(38) fiduciary services are appointed) are offered by Gusto Investment Services, LLC, an SEC-registered investment adviser. 3(16) fiduciary services are offered by Gusto Retirement Services, LLC, and only made available to clients who utilize an eligible payroll provider. For more information regarding fees, refer to the pricing page.
This information is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal, and/or financial advice that considers all relevant facts and circumstances. Investing involves risk and investments may lose value. Tax laws and regulations are complex and subject to change. You should consult a qualified financial adviser or tax professional before relying on this information.