✨ Introducing Gusto 401(k) powered by Guideline.
$0 employer fees for 3 months with a new 401(k) - or 9 months if you’re switching over
Professionally managed investment portfolios are designed to be diversified and low cost. Their estimated total cost can be under 0.22%4—that’s up to 7x less than the industry average.
Affordable prices for growing businesses. Guideline’s
account fees for participants start at 0.15%.1
Set up a little as 20 minutes. Save time with employee
self-enrollment and intuitive dashboards.
From serving as your fiduciary to ongoing compliance testing2,
Guideline offers end-to-end management of your 401(k).3
Active employees are charged an annual account fee starting at 0.15%1 with no transaction fees.
rollover fee
loan fee
distribution fee
plan termination fee
5500 prep fee
Get a 401(k) that works for you and your employees
Your company could be eligible to receive up to $16,500 in tax credits over the plan’s first three years to help offset initial plan costs.
+ $4/mo per active participant
A simplified 401(k) with limited
features and easy administration.
+ $8/mo per active participant
A foundational 401(k) with
robust features and more plan
design options.
+ active participant fee
Our most custom 401(k) with
exclusive pricing options and
premium support.
401(k) plans include the fundamental services needed to offer a great benefit, including:
6 Guideline uses a third-party to provide custodial services. Custodial fees are paid by Guideline.
7 Guideline's 3(16) fiduciary services are only available to clients who utilize an eligible payroll provider.
The average time for setting up a Guideline 401(k) is 40 days. This is mostly due to the mandatory 30 day waiting period enforced on plans with automatic enrollment.
Great news: the 457(b) has a separate elective deferral limit from 403(b)/401(k). You can fully fund a 457(b) and still contribute up to the 403(b)/401(k) limit--just remember 403(b) and 401(k) share one cap.
Catch-ups can increase these amounts by up to $7,500 per plan if age 50+. Some 457(b) plans offer a special 3-year final-service catch-up--check plan specifics.
| Scenario | 457(b) | 403(b)/401(k) | Employer Contrib. | Total Employee Deferrals |
|---|---|---|---|---|
| Teacher + State 457(b) | $23,500 | $23,500 (403b) | Varies by plan | $47,000 |
| Split deferrals | $10,000 | $13,500 (403b/401k) | Up to §415(c) | $23,500 |
| Age 50+ | $31,000 | $31,000 (403b/401k) | Up to §415(c) | $62,000 |
403(b) and 401(k) elective deferrals aggregate under §402(g). 457(b) deferrals are separate. Employer contributions are constrained by §415(c) per unrelated employer plan.
Email me your personalized plan →Companies within the first three years of offering retirement benefits to employees may be eligible to claim these tax credits. In addition companies must have had 100 or fewer employees who received $5,000 in compensation or more in the year before retirement benefits were offered.
For additional details on eligibility, review the guidelines provided by the IRS. IRS guidelines
IRS Form 8881 should be provided to your tax preparer for them to include in the filing of your business’s income tax return. Additional changes to your business’s income tax return may be required as a result of form 8881. For a step by step on filing this tax credit, review the instructions provided by the IRS. IRS instructions
The amount of the tax credit varies by employer. It is a portion of the costs incurred from offering a retirement benefit to employees up to $5,000 per company for plan costs, an additional $500 credit for plans including an auto-enrollment feature (which all Guideline plans include), and the potential for additional credits for companies who contribute to employees’ plans (including matching contributions).
The 401(k) tax credit is used to reduce the amount you pay in taxes for a given year. This credit will not result in a cash refund for a current tax year.
If you do not owe any income tax this year then you can still benefit by either carrying back your credit one year or carrying over your credit amount to future years, for a maximum of 20 years. For example, if you do not owe taxes this year but then owe taxes next year you can put the unused amount towards reducing next year’s income tax.
Any costs claimed through the 401(k) tax credit, including plan administration costs and additional education expenses, may not also be deducted as business expenses. If you are claiming this credit, ensure that any claimed expenses are excluded from your deductions.
One of our dedicated team members will be happy to reach out, once you complete a form, to chat about retirement solutions for your business.
Share Us:
Follow Us:
Disclaimer: The information on this website is for informational and educational purposes only and should not be considered legal, tax, or accounting advice. Laws and regulations— including IRS rules and California conformity provisions—are subject to change, and guidance may evolve after publication. No guarantee is made regarding the accuracy or completeness of the content. Reading this website does not create a client relationship with Tandy Consulting Inc. For advice specific to your situation, please consult a qualified professional. © 2025 Tandy Consulting Inc
