If you have other eligible retirement plans or IRAs, you may be able to rollover those funds into your active Gusto 401(k) account.
You can start the inbound rollover process in your 401(k) dashboard, but you’ll also need to work with your prior service provider to complete the request.
When to start your inbound rollover
You can initiate the request to rollover your funds to your Gusto 401(k) any time after the plan’s start date (for newly established plans) and once you’ve created your account. Starting a rollover before these steps occur could result in processing delays or returned funds.
We’ll send you an email after your first contribution with the plan to let you know it’s time to rollover your funds. You can also check your employer’s plan start date on the Plan Details page of your dashboard.
How to move money into your Gusto 401(k)
Step 1: Start the process
After logging into your 401(k) account, click on the Money Movement button in the main menu of your dashboard and navigate to Move money in.
In the rollover page, select the “+ Add a rollover” button.
Step 2: Add your previous account details
Enter the requested information regarding the account type and balances you would like to roll over to Gusto. If any info changes, you will be able edit the details later.
We’ll need to know:
Previous brokerage firm: Financial institution where your funds are currently held
Account type: IRA, 401(k), 403(b), eligible 457(b), defined benefit, etc.
Pre-tax balance: Total pre-tax amount to roll over, including employer contributions
Roth balance: Total Roth amount to roll over, including employer contributions
Roth basis: The total contributions made to your the Roth 401(k), excluding earnings or losses
Note that you cannot rollover non-Roth after-tax assets into your 401(k) at Gusto Retirement
The workflow will request both the pre-tax and Roth amounts. If you are only rolling over one type of contribution, enter $0 in the other to allow submission of the request.
If you’re rolling over from an IRA, we’ll also need to know the account type, such as SIMPLE, SEP, or traditional. Please note that you cannot rollover Roth IRA assets into a 401(k) plan, per IRS regulations. Learn which types of retirement accounts are eligible for a rollover.
401(k) plans at Gusto also cannot accept non-Roth after-tax contributions in an eligible retirement plan or non-deductible contributions held in a traditional IRA.
Step 3: Review rollover instructions and contact prior provider
Once you have completed the process, instructions for requesting the rollover from your previous provider and sending the funds to us will be displayed. You will also receive a confirmation of your request and a copy of the rollover instructions in your email.
You will be able to see the rollover instructions again and view, edit, and track the status of your rollover from the “Money movement activity" page at any time.
Request a check from your prior provider
At this point, you must contact your previous provider to request a release of the funds via check. Gusto does not support rollovers via a wire or ACH transfer at this time. Additionally, Gusto cannot accept in-kind rollovers where the investments are not liquidated before being rolled over.
The rollover instructions will include information on how the check should be made out and where it should be sent to ensure Gusto receives it.
When working with your previous provider, please share with them the following information:
The check payable to details, as stated in the rollover instructions
Your retirement account ID. This is required so we can properly allocate the funds to your account. Failure to include your account ID may lead to a processing delay or the check being rejected and returned to the sender.
If your prior provider is unable to include your account ID, please have the check mailed to you. Once you receive it, add your account ID, then forward it to your custodian’s address provided with the rollover instructions.
Mailing address for the check. Typically, you can request the funds be sent either directly to Gusto or to your address.
If the provider can only mail the check to your address, you can forward it to the address outlined within our instructions once you receive it. In the event your previous provider mails the check directly to you, we recommend making copies of it for your financial records prior to mailing in the check. Please do not endorse the check before sending it to us.
You may also request an indirect rollover where the check will be made payable to you or deposited directly into your personal bank account. However, indirect rollovers have mandatory tax withholding as well as strict time constraints and require additional steps.
⚠️ Please note: Checks must be sent to your plan’s custodian, as specified in the instructions. Please do not have checks sent to Gusto’s business mailing addresses as this could lead to significant processing delays or the loss or return of your check.
Inbound rollover processing timeline
The delivery time for your rollover check to reach the custodian can vary depending on the mailing option you select.
Standard USPS mail generally takes 7-10 business days, but if you prefer tracking or quicker delivery, consider using USPS Priority Mail, USPS First Class, USPS Priority Express, or a service by FedEx or UPS.
You will receive an email notification within 5-7 business days after your custodian receives your check. It will then take approximately 10 business days for the funds to be applied to your 401(k) with Gusto Retirement.
Please note, processing delays may occur if any information is missing, incorrect or requires verification. In cases where we cannot verify the information or when required information is missing or incorrect, the rollover check may be returned.
In total, it may take upwards of 4 weeks for an inbound rollover to show in your account.
Where to view rollover status
You can view the status and details of your rollover at any time under Transfers > Move money in. You can also edit or cancel the rollover from this screen until processing begins.
If we have not yet received the check or your rollover is still in process, it will show as “Pending.” Once the funds have been allocated into your Gusto account, the status will show as “Complete.”
You can click the “View details” button for any rollover to see the amounts of your transactions.
This content is for informational purposes only and is not intended to be construed as tax or investment advice. You should consult a tax professional or financial advisor to consider all alternative options to rolling your money into a 401(k). Investing involves risk, and investments may lose value, including loss of principal.