FAQs for Plan Sponsors Suffering from Coronavirus Related Business Disruptions R. Dean Piccirillo / Rod Diaz

03/31/2020 — Download

The Retirement Plan Services group answers your most pressing questions in this FAQ.

Can I reduce, suspend or eliminate my employer contribution for the year?

It depends on whether your plan document requires mandatory contributions to be made or whether the plan document allows for discretionary contributions. Generally, discretionary contributions can be stopped or suspended at the employer’s discretion; however, mandatory contributions such as safe harbor match and safe harbor non-elective contributions have special rules for stopping or suspending them mid-year. If you need to give serious consideration to suspending your safe harbor contributions, please contact us at HBKS Wealth Advisors and we will work with you and the appropriate administrative firm servicing your plan to determine feasibility. Under adverse business conditions safe harbors can be suspended with a 30-day notice. <<You can find an expanded summary of steps for suspending Safe Harbor contributions at this link.>>

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The information included in this document is for general, informational purposes only. It does not contain any investment advice and does not address any individual facts and circumstances. As such, it cannot be relied on as providing any investment advice. If you would like investment advice regarding your specific facts and circumstances, please contact a qualified financial advisor.

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