Guideline
Affordable 401(k) plans for small businesses with transparent pricing
How it works
Guideline is a 401(k) provider designed specifically for small businesses, with three plan tiers and a Solo 401(k) option. The Starter plan ($49/mo + $4/participant) is for first-time plan sponsors but caps employee contributions unusually low at $6,000. The Core plan ($119/mo + $8/participant) offers a full-featured 401(k) with Safe Harbor options, Roth and traditional contributions, employer matching, and profit sharing. The Enterprise plan ($179/mo + $8/participant) adds premium support, plan transfers, and flexible pricing. All plans charge employees a flat 0.25% annual fee on assets and use low-cost Vanguard funds. Guideline handles all administration: compliance testing, Form 5500 filing, and employee onboarding. It was acquired by Gusto in 2023.
Is it right for you?
Consider if you
- Small businesses offering retirement benefits for the first time
- Companies already using Gusto for payroll (deep, seamless integration)
- Solopreneurs wanting a cost-effective Solo 401(k) with low fees
Skip if you
- Large enterprises needing custom plan designs or a wide range of investment options
- Businesses outside the United States
- Companies wanting SEP IRA or SIMPLE IRA instead of a 401(k)
Your money and data
Guideline is a regulated retirement plan provider. All 401(k) plan assets are held in trust at a qualified custodian, legally separate from Guideline's corporate operating accounts. Employee contributions are remitted through payroll integration and held in accordance with ERISA fiduciary standards. Guideline carries ERISA fidelity bonds as required by federal law. The platform is IRS-compliant for all tax reporting and nondiscrimination testing.
Pros & Cons
Pros
- Transparent, published pricing with no setup fees or hidden costs
- Seamless Gusto payroll integration (Gusto acquired Guideline in 2023) for automatic contribution sync
- Auto-enrollment features help businesses qualify for up to $16,500 in SECURE 2.0 federal tax credits
Cons
- Starter plan caps employee contributions at $6,000 (far below the IRS $24,500 limit for 2026)
- Limited investment menu compared to full-service providers like Fidelity or Vanguard direct
- Mobile app has limited features; web platform is the primary management interface
Pricing details
Starter: $49/mo base + $4/active participant (employee contributions capped at $6,000; no employer contributions or loans allowed). Core: $119/mo base + $8/active participant (full 401k, Safe Harbor, employer match/profit sharing, employee limit up to IRS max). Enterprise: $179/mo base + $8/active participant (adds plan transfers, premium support, flexible pricing). All plans: employee pays 0.25%/year on assets. No setup fees. Solo 401(k) pricing available separately.
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