All Guideline accounts have an automatic enrollment feature. This means once your plan starts or you become eligible, you will automatically be enrolled and begin contributing into the plan at your company's default deferral rate.
Auto-enrollment notifications are sent out within 30 days of eligibility. If you missed the deadline for opting out, it may be possible for you to request a refund of your contributions in some cases.
Am I eligible to receive a refund?
To be eligible for an auto-contribution refund, you must have been automatically enrolled in an eligible automatic contribution arrangement (EACA) or qualified automatic contribution arrangement (QACA) plan (which most Guideline plans are).
You must also request a refund within 90 days of your first automatic contribution.
How do I begin my refund request?
If you meet the qualifications above, you are eligible to request a refund.
To initiate the request:
Click on your name in the upper right corner of your Guideline dashboard.
From the drop-down menu, select Auto-enrollment refund and complete the subsequent questions. Note: If you do not see this option, you are not eligible to request the refund.
Please don't delay in submitting your request, as missing the 90-day deadline will put your refund eligibility at risk.
How long will it take to receive my refund?
Through the refund process, we’ll continue to keep you informed. Keep a look out for email notifications once the request is submitted, again after the request is approved, and finally once the funds are on their way.
Here's the general timeline you can expect depending on the method of refund you selected:
Check: After you submit the refund request, standard check processing and shipping takes approximately 3-4 weeks.
ACH: ACH processing and fund transfers typically take 7-12 business days. You should receive the deposited amount in your personal banking account within 3-4 business days thereafter.
Are there tax implications for receiving a refund?
An auto-enrollment refund will be treated as a permissible withdrawal and included in your gross income for the year in which the refund was issued. You will receive a 1099-R the next January to use when filing your taxes. The 10% early withdrawal tax penalty will not apply.
If I opt out of my plan now, can I opt back in later?
While requesting a refund will automatically set your deferral election to zero, you can opt back in at any time. To do so, log into your Guideline dashboard and click on the “Change contribution” button and increase your contribution rate to something higher than 0%.
This information is for general education purposes only and not intended to be tax advice. We encourage you to consult a qualified tax professional before requesting a withdrawal.