A Starter 401(k) is a simplified employer-sponsored retirement plan. If you’ve had a standard 401(k) in the past or you’re familiar with how they work, your Starter 401(k) plan will be similar. However, Starter 401(k) plans have different requirements and limits than standard plans.

→ Check out a comparison of Starter 401(k) versus standard 401(k) plans.

Here’s what you should know if your employer offers a Starter 401(k) retirement plan through Guideline.
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If you have a Starter 401(k) through your employer, here’s what you can expect:
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If you are at least 18 years of age, you are eligible to participate in your employer's Starter 401(k) plan.
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Once you are eligible, you will receive an email notification from Guideline outlining your auto-enrollment date and default contribution rate. If you do not take action to manually set up your account or opt out of the plan, you will be automatically enrolled as outlined in the email. The default rate will be at least 3% of your compensation but can be up to 15%.
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The annual contribution limit for Starter 401(k) plans is $6,000 for 2024. This amount may be increased each year by the IRS.
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If you contribute to multiple 401(k) plans – either because you switched companies mid-year or you work for more than one employer – then the standard annual deferral limit will apply across your combined plans.
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We recommend reporting any contributions you make to other plans within your Guideline dashboard, so we can keep track of all your contributions and help prevent you from overcontributing. To report external contributions, click on your name in the upper right corner of your dashboard, then select Account Settings > Report outside contributions.
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If you are over age 50, you can contribute an additional $1,000 in catch-up contributions, for a total limit of $7,000 (for 2024).
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You will be able to personally contribute on both a pre-tax and Roth basis. Your contributions are always 100% vested.
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While you will not be able to take a loan from your Starter 401(k) plan, hardship withdrawals are allowed in certain circumstances.
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Once eligible for the plan, if you have funds within other qualified retirement accounts, such as a 401(k), 403(b), or traditional IRA, you can rollover those balances to your Starter 401(k) plan with Guideline. Any rolled over amounts will not count toward your annual contribution limit.