We understand your retirement savings are a top priority. This article provides 401(k) participants with answers related to the pricing update, what the fees cover, and where to find more information.
What's changing?
401(k) plan fees are being updated. Your notification email includes the specific changes and effective date that apply to your account. No other aspects of your 401(k) — such as investment selections, contribution amounts, or employer contributions — are affected.
Why are fees changing?
We periodically update our pricing to reflect the cost of managing and administering retirement plans. This update simply moves your account to our standard, current pricing structure.
What fees are impacted for participants?
There are two fees that may apply to your 401(k) account:
Annual account fee: The annual account fee is based on your 401(k) account balance, calculated as a percentage of assets under management (AUM). While this fee is usually paid by participants, your employer may choose to cover all or a portion of these fees.
Active participant fee: An administrative account fee. While this fee is typically paid by employers, all or a portion may be passed on to you.
You can find the specific fees that apply to your account within the email notification you received.
How is the annual account fee calculated?
Your annual account fee is calculated and deducted on a monthly basis, based on your balance on the last day of the calendar month:
Divide the annual fee percentage by 12.
Multiply that monthly rate by your month-end account balance.
That amount is deducted from your account.
For example: With a 0.25% annual account fee and a $10,000 month-end balance, the monthly deduction would be approximately $2.08.
Learn more about how your 401(k) annual account fee is calculated.
Where can I see my fee deductions?
You can view your monthly fee deductions in your account:
On the web: Go to your dashboard and select Transactions
On the Gusto Retirement mobile app: Check Recent transactions on the Home screen
When does this take effect?
Your pricing effective date is included in your notification email. You'll receive at least 30 days' notice before the change takes effect.
Does this affect my investments or contributions?
No. This update only affects the fees outlined in your notification email. The following are not affected:
Your investment selections
Your contribution amounts
Any employer contributions
What if I've left my employer?
If you're a former participant with a positive account balance, the annual account fee change applies to your account as well. Your other fees — including the $4 monthly maintenance fee — are not affected at this time.
Do I need to do anything?
No action is required. You do not need to make any changes to your account.