Here are several frequently asked questions for plans that are converting their 401(k) plans to Guideline.
What is a conversion plan?
A conversion plan is a plan-to-plan transfer, or an existing 401(k) plan that has moved to Guideline from a different provider.
Should I include my Onboarding Specialist in communications with my existing provider?
Your Onboarding Specialist should be included in all correspondences with your existing 401(k) provider to ensure a smooth transition.
How long will it take to transfer my retirement plan to Guideline?
Transferring a 401(k) plan can take approximately 90 days. The completion of the transfer depends on when the transfer begins with your existing provider as well as when Guideline receives final reports to record participant assets.
Generally, the transfer will be completed before the end of the scheduled blackout date. For specific dates, please reference the transfer timeline your existing provider sends during the transition.
Do I need email addresses for dismissed participants?
The IRS requires any participant that has a balance in a 401(k) plan to receive notice of changes that impact their account. In order for Guideline to adhere to IRS regulations, email addresses are required for dismissed participants with balances in the plan to ensure proper notification of the plan transfer.
We do not send paper notices, therefore, it’s important that an email address is provided at setup. If an email address cannot be provided, you, as the employer, are responsible for sending all required notices and plan communications (including blackout notices) to dismissed participants via certified mail.
Will participants have to initiate an inbound rollover to Guideline?
All participant funds will transfer to Guideline at the plan level. Participants will only need to request an individual rollover for assets they wish to transfer to Guideline that are held outside of your current plan.
Are participants required to report external 401(k) contributions during onboarding?
If an employee made personal contributions to another eligible plan, those contributions are counted toward the annual contribution limit. Once a participant has set up their Guideline account, they can report any external contributions online.
Participant contributions should be reported: When the employee made contributions to any other employer's eligible plan during the same year.
Participant contributions should not be reported: When the employee only made contributions to your current plan during the year prior to the plan transferring to Guideline.
If a participant fails to report external contributions during the onboarding process, they can report those outside contributions on their dashboard up to March 1 of the following year.
When should I contact my existing 401(k) provider?
Once you have signed off on your plan design, a transfer task will automatically populate on your administrator dashboard to move forward with the transfer.
The transfer task will provide you with instructions on next steps. Be sure to mark the transfer task as complete to notify your Onboarding Specialist that you have initiated the transfer.
When are the last 401(k) contributions made to my existing 401(k) plan provider?
The last 401(k) contribution at your existing plan provider will depend on the plan's transition date with that provider.
Can a converting plan delay the first contribution date at Guideline?
Yes, provided the plan start date has not passed and no major provisions have changed in the Adoption Agreement with Guideline. If you would like to delay the plan start date, please contact your Onboarding Specialist to discuss next steps.
I stopped contributions with my prior 401(k) provider, what should I do now?
Payroll contributions are required to continue with your current provider until a transfer timeline has been scheduled. It’s your responsibility to ensure any missed contributions are corrected with your provider. If Guideline must make corrective contributions, an extraordinary service fee will apply.
When will the employees be able to access their transferred funds?
Once assets are allocated to participant accounts, participants will be able to view their account balance on their Guideline dashboard.
Will Guideline be able to process our profit sharing contribution?
Prior year profit share contributions for conversion plans transferred in the current year can be processed by Guideline as long as the company’s tax filing deadline has not passed, and an allocation breakdown has been provided by the prior administrator. Guideline is not able to modify allocations calculated by outside parties. Any corrections or changes must be made by the prior administrator before Guideline can process it.
Beginning with the current year, Guideline will calculate and process profit share contributions for plans that request one.
Who will prepare my annual Form 5500?
Guideline will prepare the annual Form 5500 beginning with the year the plan transferred to Guideline. Your prior provider will be responsible for filing the Form 5500 for the prior year.
For example, if the plan was transferred to Guideline in 2024, Guideline will prepare the Form 5500 filing for the 2024 plan year end. Your prior provider will be responsible for filing the form for the 2023 plan year.
For conversion plans that transfer later in the year, Guideline can file the Form 5500 provided all assets are received before December 31 of the same plan year and we receive a year-to-date report reflecting all financial activity for each participant.
Should participants contact our Onboarding Specialist if they need help?
Participants have access to our extensive Help Center, which provides helpful resources, guides, and FAQs to help them with their Guideline 401(k) plans.
If they need additional assistance, we have a dedicated participant support team that can help.