The recent acquisition of Guideline by Gusto has brought about significant changes for employers who use Guideline’s 401(k) services but do not process payroll through Gusto. Nearly 30,000 retirement plans and 350,000 savers are expected to transition to Vestwell's platform as a direct result of this deal, highlighting the scale of impact for small and midsize employers.

This shift means HR and Finance leaders must now navigate new administrative requirements, assess integration changes, and make decisions about the future of their retirement plans. For a more detailed breakdown of plan changes and compliance updates, visit our 401(k) resources for employers.

The Short Answer: Your Options at a Glance

Employers not using Gusto payroll have three primary options:

• Stay on your current setup (now managed under a self-service model)

• Adopt Gusto payroll to retain integrated 401(k) administration

• Switch to a new 401(k) provider that fits your payroll and integration needs

Following the acquisition, integration is now limited to Gusto payroll and select Gusto Embedded Payroll partners, so evaluating your current payroll compatibility is essential.

Each option comes with different administrative implications, risks, and benefits. The transition of nearly 30,000 plans demonstrates the widespread nature of these changes.

Employers should weigh the advantages of integration, the administrative burden of self-service, and the potential for smoother transitions with alternative providers. If you remain with a non-Gusto payroll, your team will have to take on more of the ongoing administration directly.

First, Confirm Your Current State: The Employer’s Checklist

Before making any decisions, it’s critical to take stock of your current systems and responsibilities:

1. Identify your current payroll vendor and whether it is integrated with your 401(k) plan.

2. Review your HRIS and current data feeds for integration settings.

3. Confirm who owns plan administration within your organization.

4. Determine advisor involvement and support contacts.

5. Locate your current integration settings to understand what may change.

Confirming data accuracy and compliance requirements now will help prevent costly errors or regulatory issues during any transition.

If you’re unsure how to review your current integrations, our 401(k) resources page offers step-by-step guidance.

Option 1: Staying on Your Current Setup: What to Verify

It’s a common question: What does it really mean to stay with Guideline (now Accrue 401(k)) if you don’t use Gusto payroll? Employers who stay will be required to manage their plans manually through a self-service model. This approach can be labor-intensive and error-prone, as manual processes often lead to increased administrative overhead, compliance risks, and potential penalties. For instance, missing compliance tests or Form 5500 filing deadlines can result in substantial fines.

Industry experts note that manual 401(k) administration can consume significant staff hours each month, diverting resources from higher-value work.

Note that Accrue 401(k) has been set up as an interim administrator and you may eventually need to select a new long-term provider.

Make sure you review all communications from your provider, verify if any new constraints apply to your existing plan, and confirm your support contacts and response expectations.

For more on support changes, see our post on Guideline Support Changes: How to Plan for Continuity.

Option 2: Adopting Gusto Payroll: What Changes?

Switching to Gusto payroll allows you to retain integrated 401(k) administration, which offers significant benefits. Integrated payroll and 401(k) provider options post-Guideline acquisition can result in major time savings, automate compliance tasks, and minimize error rates. According to industry research, automated data exchange reduces manual tasks and helps prevent late or incorrect submissions, lowering the risk of penalties or audits.

This integration also helps that eligibility and contribution calculations are accurate, streamlining annual testing and reporting. Gusto’s leadership has made compliance and an integrated offering a top priority after acquiring Guideline, with a stated goal of serving employers in states with retirement plan mandates.

If you’re considering this option, validate how the payroll-retirement connection will work for your organization and request clear documentation of all changes in writing. Learn more about integrated payroll and retirement solutions in our article: What the Guideline Acquisition Means for Employers (Support, Pricing, Transitions).

Option 3: Switching Providers: When and Why It Makes Sense

Sometimes, the best path is to switch to a new provider, especially if integration, compliance, or service continuity is at risk. Mergers and acquisitions can lead to significant service disruptions and administrative challenges, so careful planning is key.

While precise blackout period statistics are limited, industry experts emphasize the need to prepare for administrative changes and possible temporary loss of account access. Given new trends in cybersecurity and technology integration, thoroughly vetting potential new providers is more important than ever.

For a practical playbook on switching, see Switching 401(k) Providers: Your No-Drama Playbook.

Communications and Change Management Basics

Clear, timely communication is essential throughout any provider transition. Best practices include providing advance notice of at least 30 days before any changes take effect, offering clear instructions on new systems, and being transparent about any changes in plan features or fees.

Federal regulations such as ERISA require employers to keep plan documents up to date and provide clear notices to participants about any changes.

During blackout periods, inform participants well in advance, explain the duration, and outline which transactions will be restricted.

For ready-to-use communication templates, visit our Employee Communication Templates for Provider Changes.

Next Steps: Owner-Based Checklist & Employer CTA

Here’s a concise checklist to guide your team through the next phase:

1. Review your current plan setup and confirm all admin responsibilities.

2. Double-check your Form 5500 filing status and confirm all fiduciary duties are being met during the transition.

3. Document key decisions and communication strategies.

4. Communicate changes to employees clearly and in advance.

5. Prepare for transition by collecting all necessary information and planning for possible blackout periods.

Ready to take action? Get started (for employers).

Compliance Note

This content is for informational purposes only and is not legal, tax, investment, or compliance advice.

References

• Vestwell to Acquire Accrue 401(k) Plans. (2024). https://www.vestwell.com/news/vestwell-to-acquire-accrue-401k?utm_source=openai

• Common Pitfalls in 401(k) Administration and How to Avoid Them. (2023). https://www.ryanpeca.com/common-pitfalls-in-401k-administration-and-how-to-avoid-them/?utm_source=openai

• What is 401(k) Administration and Its Importance?. (2022). https://www.addify.com.au/tips/what-is-401k-administration-and-its-importance/?utm_source=openai

• 401(k) Integration: Streamline Retirement Plan Management. (2023). https://www.adp.com/resources/articles-and-insights/articles/4/401k-integration.aspx?utm_source=openai

• Gusto <> Guideline’s Acquisition: What You Need to Do. (2024). https://www.forusall.com/401k-blog/gusto-guidelines-acquisition-what-you-need-to-do?utm_source=openai