Investment advisory services for Gusto's 401(k) (when 3(38) fiduciary services are appointed) and IRA products are offered by Gusto Investment Services, LLC, an SEC-registered investment adviser. For more information regarding fees and services, see Gusto Investment Services' ADV 2A Brochure and Form CRS.

The Department of Labor divides 401(k) fees into 3 main categories:

Investment fees typically account for the largest share of 401(k) fees overall.
These costs cover any investment-related services. Usually, these are charged as a percentage of assets.

Administration fees cover general 401(k) management, such as day-to-day administration, record keeping, reporting, and compliance testing. These costs are often charged as a flat rate per participant or a percentage of assets under management. While employers will sometimes cover these costs on employees’ behalf, they can pass some onto the plan participants.

401(k) providers often charge participants for various one-off services, like distributing funds, processing a 401(k) loan, or processing a Qualified Domestic Relations Order.
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Participating employees pay an account fee called an asset under management (AUM) fee that typically ranges between 0.15% and 0.35% of their account balance.¹ The exact amount charged depends on the pricing plan chosen by their employer and when the plan was established. Additionally, Gusto Investment Services' managed portfolios have a blended average mutual fund expense ratio ranging from 0.058% to 0.061% of assets under management.² The expense ratio is not charged by your 401(k) provider, but instead by the managers that operate the funds.

Depending on your plan's terms, you may be charged a $50 fee for in-service distributions, rollovers, or withdrawals taken after your employment with the sponsoring employer has ended. You may also be charged a $25 fee on withdrawals for residual dividends.

If you leave the company, there’s a 90-day grace period where no additional fees are incurred. If you maintain a balance after that, a maintenance fee of $4-6, charged by Gusto Retirement Services, LLC will apply, in addition to any AUM fee charged by Gusto Investment Services. You can learn more about fees in this article.

¹ An assumed annual account fee of 0.15%-0.35% is applied to assets under management and is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.15%-0.35%) based on the account balance on the last day of each month. See the Form ADV 2A Brochure for more information regarding fees.

² Expense ratios for custom portfolios will vary. These expense ratios are subject to change by and factored into the value of the fund View full fund lineup.

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