This article provides some introductory information on a 401(k) and can help direct you to more detailed articles that expand on certain topics that you may find insightful.

You’re considered a participant if you’re an employee of a company that has a 401(k) plan with Guideline and have met any eligibility requirements. If you’ve recently become eligible to enroll in your 401(k) plan at Guideline, we want to make sure you have all available resources and information to start saving.

Your 401(k) is funded through payroll deductions based on the contribution rate that you choose (including elections that are made by default). There’s no limit to the amount of times that a participant can change their contribution rate, however, contribution rate changes need to be made one pay period in advance in order to take effect for the next upcoming payroll. You can read more about changing your contribution rate here.

Note – 401(k) plans do not allow for external contributions directly from a bank. They can only be funded through payroll deductions.

You will not see your funds immediately deposited into your account on your payday. Contributions should be fully attributed to your Guideline account approximately seven business days after your pay date. Please note, holidays can add a day to the processing timeline. In these 7 days, Guideline is working with your company’s payroll provider, creating records of deductions, receiving the funds from your employer, and finally handling the trade activity into your account based on your portfolio elections.

The IRS sets an annual deferral limit, which dictates the maximum amount a participant can contribute across most retirement plans.

This includes pre-tax and Roth employee contributions for 401(k) plans, 403(b) plans, Starter 401(k), and SARSEP plans. However, any contributions you receive from your employer (e.g., employer match or profit sharing) do not count toward this total. The annual deferral limit is only the amount you, as the participant, can contribute.

For more information on the current annual deferral limit and catch-up contributions, please see this article.

Your account will be invested into the portfolio allocation you’ve selected. As your funds are invested, they’re subject to gains and losses based on market performance. If you were auto-enrolled and did not choose your investments, your money will be invested into what’s known as a Qualified Default Investment Alternative (QDIA). You can check out this article here for more information regarding the QDIA offered by Guideline Investments, LLC (“Guideline Investments”).

Guideline Investments offers six professionally managed portfolios, but participants also can create their own custom portfolio. You can read more about the professionally managed portfolios here, and see the total fund menu options here. Exactly like your contribution rate, you can always change your portfolio allocation. You can check out this article for more information on changing your portfolio.

To get more familiar with your specific 401(k) at Guideline and its offerings, we recommend all participants review the Plan Design page and your Summary Plan Description.

Guideline has no transaction fees. Guideline Investments charges participants an Assets Under Management (AUM) fee while they maintain an account in their employer sponsored 401(k) plan. The AUM fee can differ based on the design. Please consult your Summary Plan Description for any and all related fees the plan sponsor has elected.

If you leave the company, there’s a 90-day grace period, if you maintain a balance after that, $4 per month maintenance fee, charged by Guideline RK, LLC will apply, in addition to any AUM fee charged by Guideline Investments. You can learn more about fees in this article.

If you have an existing 401(k) or other eligible retirement account with another financial institution, you can rollover those funds into your 401(k) at Guideline with no tax implications if you have met the eligibility requirements.

To start the process, make sure your other retirement account(s) can be rolled over into a 401(k) account. You can refer to this article that has a chart of all eligible retirement accounts. If your account(s) do qualify, you can follow the steps outlined in this article to start the inbound rollover process. Please note that you cannot rollover any non-Roth after-tax assets into your plan at Guideline.

While you may just be starting your retirement journey with Guideline, you may want to better understand if the funds in your retirement account are accessible.

If you are interested in moving funds out of your 401(k) account, you’ll need to first meet the distribution requirements. The necessary conditions defined under your plan rules are referenced in your Summary Plan Description document.

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​The most common allowable reasons for distributions include:

If you do not meet one of the conditions to distribute your funds, you still have alternatives if you qualify for a 401(k) loan or hardship withdrawal.

Guideline has an award-winning¹ mobile app that’s available for both iPhone and Android. Check out the video below to learn how to get started with Guideline using our mobile app.

¹ 2024 Fast Company Innovation by Design Award Winner for Guideline's mobile application in the Mid-Size business category.

Investment advisory services for Guideline’s 401(k) product (when 3(38) fiduciary services are appointed) are offered by Guideline Investments, LLC, an SEC-registered investment adviser. 3(16) fiduciary services are offered by Guideline RK, LLC and only made available to clients who utilize an eligible payroll provider. For more information regarding fees, please refer to the pricing page.

This information is general in nature and is for informational purposes only. It shouldn’t 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.

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