Frequently Asked Questions

Do you have questions? The list below provides answers to some of the most frequently asked questions. But, if you don’t see your question, please give us a call.


My church only has one employee, the pastor, are we eligible?

Yes. Every single person is important to us regardless of the size of the church. The Master's Plan is reserved for ministries and non-profits with less than 100 participating employees.

Will my retirement account be safe?

While there are no guarantees with any investments, with mutual funds you have the benefit of investment diversification with Timothy Plan’s funds. There are regulations in place that limit the amount a diversified mutual fund can invest in any one company. Although diversification does not guarantee there will be no investment losses, it does limit exposure of loss due to the performance of any one company the finds invest in.

How much should I contribute?

There a lot of things to consider when thinking about how much to contribute. Such as your age, how far away from retirement are you, do you have any retirement savings currently? Its always best to start young, but it is never too late to start. Experts recommend a 15% retirement savings goal. If that’s not possible, start with what you can afford and then increase yearly including any raise, promotion or bonus. Remember, doing without that one specialty latté a week, or a large pizza out a week can add up quickly for those retirement dollars. Every person’s situation is different and that will affect how much you should start putting away for retirement. Set a goal and then keep on track.

How much can I contribute?

IRS states the limit on elective deferrals – the most an employee can contribute to a 403(b) account out of salary - is $20,500 in 2022. Employees who are age 50 or over at the end of the calendar year can also make catch-up contributions of $6,500 beyond the basic limit on elective deferrals.

The limit on annual additions (the combination of all employer contributions and employee elective deferrals to all 403(b) accounts) generally is the lesser of:

  • $61,000 for 2022 or
  • 100% of includible compensation for the employee’s most recent year of service

Can I roll money over from another plan?

Certainly! With a direct rollover or transfer of assets, you can roll money into your account from other 430(b) accounts, as well as 401(k)s and IRAs (Individual Retirement Accounts) usually with no tax consequences. Consolidating these accounts into one is a great idea for simplifying your time and energy.

How do I decide which fund is right for me?
What happens if I withdraw money before retirement age?

The IRS has specific restrictions and penalties on early withdrawals from your 403(b) plan. There is a 10% penalty for monies withdrawn prior to age 59 ½. There is tax on any tax-sheltered accumulations withdrawn, as well as any personal income tax liability. A retirement plan is set up for retirement – the IRS frowns on taking monies out of your retirement plan prior to retiring.