The Master’s Plan ("TMP") works with Churches and 501(c)3 ministries to design and maintain retirement plans that cater uniquely to each church or ministry it serves.
A church, or a church-controlled organization, can adopt a plan for the pastor/minister/priest and any employee who receives earned, taxable income (W-2). This would include full and part-time employees, worship pastors, office personnel, day care employees, etc. Even if the church runs a day care or school, teachers and school staff are eligible. Basically, anyone who works and receives earned income and a W-2 at the end of the year from the church or church-controlled organization is eligible under the church plan.
For ministries and non-profit organizations that are not affiliated with a church, there are additional requirements for eligibility. Due to the varying nature of organizations, and the regulations that apply to each unique organization, we encourage you to call to explore eligibility.
Getting started is as simple as making a phone call.
Start offering a 403(b)7.
There are many options to be discussed with your client. TMP offers organizations a full suite of options to help best meet the unique needs of each organization:
- tax-sheltered deferrals
- Roth deferrals
- both tax-shetered deferrals and Roth deferrals
- housing allowance
- vesting schedule
- timing of elgibiity
- employee deferrals
- employer match
- employer contributions
- allow rollovers
- allow transfers
- minimum age limit
Where to Start
It is recommended Advisors have a specific eligibility discussion with Master's Plan staff before offering the plan to a client. However, Advisors can utilize TMP's Questionnaire when engaging with a church or ministry, as it is designed to help determine eligibility.
Once eligibility is established, TMP will work with in partnership with the advisor to guide the ministry through the process. The goal is to ensure everyone is always on the same page. TMP will also work directly with your Timothy Plan Advisor Relations Director to maintain compliance with differing regulatory and broker/dealer needs and requirements.
Throughout the process, communication will be key as we draft the plan documents according to the determinations you have made with your client. We are available to help guide the advisor in assisting their client in the application and enrollment process.
Resources for ministers/clergy
- Should your client have plan specific questions, our office is always available directly.
- We utilize the nation’s oldest and thoroughly filtered mutual fund family upholding our bibical values, and we can run regular reports demonstrating the ongoing care to maintain those values.
- We never act as advisor. Rather, we are an additional partner to help those in ministry reach future life goals and retirement.
What You Can Expect During Setup
The 403(b)7 is an excellent benefit for a ministry to offer its staff members. At the informational meeting be prepared to discuss vesting schedule, minimum age limits, types of withdrawals, contribution limits, employer matching, etc. We are happy to provide language for you to utilize on firm-branded materials.
When eligibility is established and the plan is adopted, communicating to staff begins. Notification should be sent to each eligible staff member or employee inviting participation. Ideally, the interested staff members should be informed in writing about the Master’s Plan and directed to their website.
Once the staff member has committed to the employer’s plan, the employer will automatically start withdrawing contributions. All of this information will be included in the signup process.
Mutual Fund Selection, Fees and Payment
The Master's Plan establishes the group retirement plan (documents and enrollment), and maintains ongoing administration at no charge. There is a $10/year custodial fee. All investments must be in the Timothy Plan family of mutual funds. (The custodian assesses a $10 annual fee per account. The service provider custodian is Constellation.)
The funds in a 403(b)7 through the Master's Plan will typically be held in traditional class A shares. Every plan participant's contributions will be aggregated for the plan to achieve breakpoints. For advisors working in an RIA capacity only, please contact your Advisor Relations Director to discuss options.
Retail advisor compensation will be through a broker/dealer through consistent traditional sales loads and 12b-1 fees on class A shares. Again, if created in an RIA capacity, or for those advisors who are strictly fee-based, please contact your Timothy Plan Advisor Relations Director to discuss options.