Here are several frequently asked questions for plans that are converting their 401(k) plans to Guideline.
What is a conversion plan?
A conversion plan refers to Guideline clients that have already set up a 401(k) plan with a different provider and are transferring to a Guideline plan.
Should I include my Onboarding Specialist in communications with my existing provider?
Absolutely! Your Onboarding Specialist should be included in all correspondences with your existing 401(k) provider to ensure a smooth transition.
How long will it take to transfer my retirement plan to Guideline?
Transferring a 401(k) plan can take approximately 30 days. The completion of the transfer will be dependent on when the transfer begins with your existing provider, in addition to when Guideline receives final reports to record participant assets.
Generally, the transfer will be completed before the end of the scheduled blackout date. For specific dates, please reference the transfer timeline your existing provider sends during the transition.
I don’t have email addresses for dismissed employees. What should I do?
Guideline requires email addresses to help ensure dismissed participants with 401(k) balances in the plan are notified about the transfer. We do not send paper notices, therefore, it’s important that an email address is provided at set up. If an email address cannot be provided, the employer is responsible for sending all required notices and plan communications (including blackout notices) to dismissed participants via certified mail.
Will employees have to initiate an inbound rollover to Guideline?
No, all participant funds will transfer to Guideline at the plan level. Employees will not need to request an individual rollover from the existing 401(k) provider.
Are employees required to report 401(k) contributions during participant onboarding?
Employees are not required to report contributions they have made with their current 401(k) provider. Guideline will request year-to-date employee contribution data from you (their current employer) once the transfer is complete for record keeping purposes.
If an employee has contributed to a 401(k) plan through another employer in the current year, the employee should report those contributions at the time of participant onboarding to have contributions reflected accurately for the plan year.
Employees should always be aware of their IRS elective deferral limit to ensure they do not over-contribute to the plan. Employees that wish to max out their limit are at a higher risk of over-contributing to the plan during a plan transition.
When do I contact my existing 401(k) provider?
Once the Guideline 401(k) plan setup is complete, a transfer task will automatically populate on your admin dashboard to move forward with the transfer.
The transfer task will provide you with brief instructions regarding next steps. Be sure to mark the transfer task as complete, as this will notify your Onboarding Specialist that you initiated the transfer.
When is the final 401(k) contribution to my existing 401(k) plan provider?
The final 401(k) contribution to your existing plan provider is the last pay period before the first contribution to Guideline.
Can a conversion plan delay their first contribution date at Guideline?
Yes, provided no provisions have been changed in your Adoption Agreement with Guideline. If you’d like to delay the date, please contact your Onboarding Specialist to discuss next steps.
I stopped contributions with my 401(k) provider, what should I do now?
You should contact your Onboarding Specialist for assistance as soon as possible.
When will the employees be able to access the transferred funds?
Once the funds are deposited into the participants’ new Guideline investment portfolios, they will be able to view the deposits within their participant dashboards under Recent Transactions. The transaction will show as pending until the money settles in the investment vehicles.
Will Guideline complete our profit sharing contribution if our plan is transferring at the end of the year?
Plans that are transferring to Guideline at the end of the year require more coordination with your Onboarding Specialist. Please contact your designated Onboarding Specialist for assistance.
Who will prepare my annual Form 5500?
Guideline will prepare the annual Form 5500 beginning with the plan year in which the plan transfers to Guideline. Your prior provider will prepare the Form 5500 for the plan year that ended before the plan was transferred to Guideline.
For example, if the plan was transferred to Guideline in 2023, Guideline will prepare the 2023 Form 5500 but the plan’s prior provider will prepare the form for the 2022 plan year.
For Guideline to complete the 5500 in the conversion year, all plan assets must be transferred to Guideline before December 31 of that year and a report that reflects all the financial activity from January 1 through the transfer date for each participant is needed from your prior provider.
Should employees contact the Onboarding Specialist if they need help?
Employees have access to our extensive Help Center, which provides helpful resources, guides, and FAQs to help them with their Guideline 401(k) plans.
If they need additional assistance, they can also contact our designated participant support team.