Question
As the Plan Sponsor, what do I need to know and manage with Vestwell retirement plans?
Answer
If you are converting an existing plan over to Vestwell, reference Toast Payroll: Manage Vestwell Conversion Plans for more information.
Complete Vestwell onboarding
If you haven't done so already, make sure to work closely with your Vestwell Onboarding contact to ensure all steps of the onboarding process are complete and your plan is ready to go live with Toast Payroll.
Don't forget to tell your Vestwell Onboarding contact if you have a SIMPLE 401(k) plan.
Ensure participants elect 401(k) deferrals within Vestwell
All participants must make their 401(k) and/or Roth Elections on the Vestwell site.
Employees can access their account here.
Notify retirement-team@toasttab.com if a participant is added to a new FEIN or paygroup.
Keep up to date employee records in Toast Payroll
Employers will need to update an employee's status in Toast Payroll when employees are hired, terminated, or rehired.
It is important to enter an employee's termination date in Toast Payroll prior to their last check date in order for Vestwell to receive the termination notice and retain accurate records.
On an ongoing basis, employers need to ensure that personal information is complete/updated in Toast Payroll for every employee. The following information needs to be entered in each employee's Toast Payroll profile.
Date of birth
Home address
Note: The absence of any of these fields will cause your payroll integration to fail. In order to complete the integration, employees with missing information will be temporarily removed from the integration until their information is updated. This could result in your plan being non-compliant.
Leave 401(k) deductions untouched
Employers do not need to create 401(k) deductions. Toast will manage all 401(k)/Roth deductions.
Employers should not edit deductions titled Vestwell 401(k), Vestwell Roth, Vestwell 401(k) Match, and Vestwell Roth Match.
Manage employee loans
If your plan allows for employees to take out loans against their account, it is your responsibility to work with Toast to set up the loan repayment deduction.
The loan amount and payment schedule will be communicated to you by Vestwell. Once received, contact retirement-team@toasttab.com to set up the deduction.
Employees can learn more about taking a loan here.
This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.