We know that changes to 401(k) plan pricing can raise questions. This article is designed to help plan sponsors and administrators easily understand what's changing with Gusto 401(k) plan pricing, which fees are affected, and what steps—if any—you need to take.
Why is pricing changing?
We periodically update pricing to reflect the cost of managing and administering retirement plans. This update simply moves your account to the standard, current pricing structure, which you can review on our pricing page.
Which fees are changing?
Your notification email includes a table showing your specific fee changes.
Depending on your plan, one or more of the following may be updated:
Monthly base fee — the flat monthly fee for plan administration. This is charged by Gusto Retirement Services, LLC (“Gusto Retirement”)
Per active participant fee — the monthly fee for each eligible active participant. This is charged by Gusto Retirement.
Annual account fee — the annual fee based on each participant's account balance, calculated as a percentage of assets under management. While this fee is usually paid by participants, you may choose to cover these fees for your employees. This is charged by Gusto Investment Services, LLC.
Note: Not all fees are changing for every plan. Your notification email shows only the fees that are changing for your specific plan.
For full details on current pricing options and investment fees, visit our pricing page and Form ADV 2A Brochure.
When do the changes take effect?
Your pricing effective date is included in your notification email. You'll receive at least 30 days' notice before any changes take effect.
How is the annual account fee calculated?
The annual account fee is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.25%) based on each participant’s account balance on the last day of each month. While this fee is usually paid by participants, you may choose to cover these fees for your employees.
Will my employees be notified?
Yes. Eligible, active, and former participants with a positive account balance will receive a separate notification about changes to any applicable annual account fees. Participants will receive at least 30 days' notice before any changes take effect.
Do I need to take any action?
No action is required on your part. Your Service Agreement will be amended to reflect the updated pricing on the effective date.
You can review the following in your plan's Resource Library:
Updated Service Agreement Amendment
ERISA (Employee Retirement Income Security Act) 408(b)(2) disclosure
What other fees are not affected?
Your plan's other fees are not affected by this update.
I manage multiple related companies — how does this affect my plans?
If your companies share a legally related group, all plans in the group will move to updated pricing together. Your notification email lists all affected plans and their shared pricing effective date.