If your employer is switching to Gusto Retirement, your existing loan transfers with the rest of your plan assets. Gusto Retirement can accept one loan per participant, as long as:
The loan is in good standing
Your prior provider allows the loan to be transferred as part of the plan conversion
If you have multiple loans, they will be consolidated into a single Gusto 401(k) loan.
What to do before the transfer:
Verify your loan payments are up to date with your current provider
Confirm your current provider reflects all payments you have made
If you are behind on payments, work with your current loan provider to catch up as soon as possible
We will check with your employer about outstanding loans at the beginning of the plan conversion process and let them know if we anticipate any issues accepting your loan.
Note: During the transition, monitor your account and payroll to make sure your loan payments continue. If any payments are missed, work with your employer to correct them. Once the loan is set up with Gusto Retirement, you can make additional payments.
If your employer is switching to a new 401(k) provider, we will work with your employer to transfer your loan along with your other plan assets. Your employer will coordinate with the new provider to make sure your loan is set up correctly.
Note: During the transition, monitor your account and payroll to make sure your loan payments continue. If any payments are missed, work with your employer and new provider to correct them.
Gusto Retirement does not accept incoming loan rollovers or allow loan rollovers to another plan. If you have left your employer and have an outstanding loan, learn more about your repayment options.