Once you leave your company, you can keep your 401(k) funds with Guideline as long as your prior employer continues to sponsor the plan. (1) After a 90 day grace period starting at your final payroll, you’ll be charged a $4 monthly maintenance fee.
If you keep your funds with Guideline, monthly maintenance fees are automatically deducted from your account balance. Though funds can be distributed at anytime, no further contributions can be made to your Guideline 401(k) account since you are no longer earning compensation from the employer sponsoring the plan. To review other 401(k) account options, see the article “What happens to my Guideline 401(k) account if I leave the company?”
Though continuing with Guideline provides the convenience of keeping your account where it is, it may not be the best option for participants with low account balances as monthly fees will be deducted directly from your account after a 90 day grace period.
(1) When deciding whether to keep your Guideline account open long-term or transferring your funds to another account, you should consider all associated fees. We recommend reviewing Guideline’s fee disclosure here and comparing against the fees charged by other providers to determine whether keeping your Guideline account is the right choice for you.