CARES Act FAQs for Plan Sponsors

Key information for sponsors to help them navigate during these tough times

What are my options to reduce or stop my employer contributions, at least for now?

There may be options for you to reduce or stop employer contributions.  Many of these options are dictated by the current plan design. We recommend that you reach out to a member of our compliance team at

In the meantime, we have laid out some options in our blog, here

Additionally, the IRS just announced that any employer contribution that you intend to deduct in your 2019 corporate tax return does not need to be made until July 15, 2020, instead of April 15.

I may need to lay off some of my employees. What will be the impact on my plan?

In general, laying off 20% or more of your workforce can result in your plan being fully or partially terminated. This depends on the nature of your plan, the nature of the layoffs, the number of participants at issue, and other factors.

If the Department of Labor considers your plan to be terminated, there are potentially significant financial consequences. We recommend reaching out to our compliance team at

Have any of the deadlines for my plan changed?

We expect the Department of Labor and Internal Revenue Service will extend deadlines for your annual report (Form 5500), employer contributions, and other plan activities. That regulatory guidance has not been released yet, but we are closely monitoring these developments and will send out additional email notifications as news comes out.

Can I wait a little longer before I need to deposit employer contributions or employee deferrals?

Unfortunately, there is no option to delay or pause deposits of employer contributions or employee deferrals; retirement plans must continue to operate consistently with their terms.

As a reminder, employee deferrals and employer contributions cannot be used for any other purposes, such as to pay for other plan expenses.

My business is going through a challenging time. Is Vestwell willing to reduce their fees?

Please submit a ticket to us by accessing the Help Center here, or email us at and we will be happy to discuss any options with you.