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. Guideline deducts a $4 monthly maintenance fee from your account balance after an initial 90-day grace period following termination of employment, or after the end of the blackout period in the event of a plan transfer from another 401(k) provider. Additionally, you will continue to pay the small annual account fee of 0.08% of assets under management.
If you keep your funds with Guideline, these 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, as described above. When deciding whether to keep your Guideline account open long-term or transferring your funds to another account, you should consider all associated fees, among other factors. We encourage you to review Guideline’s fee disclosures here and compare our fees against the fees charged by other providers so that you may determine whether keeping your Guideline account is the right choice for you.
1 This fee is deducted from your account balance monthly at 1/12th of the annual stated rate (0.08%) based on month end assets.
2 This content is for informational purposes only and is not intended to be construed as investment advice. You should consult a qualified investment adviser to determine the appropriate investment strategy for you.