Church Eligibility

Church Plan Overview

There are more than 350,000 churches in the US according to a study by the Hartford Institute for Religious Research. About half of US churches are small, with less than 75 members. The Master’s Plan was created as a ministry to help the staff members of these smaller churches with no-fee 403(b)7 retirement plans where the investments are filtered for moral responsibility.

What makes this plan unique?

The Master's Plan will work with each employer to help set up a customized 403(b)7 plan for their organization. As a biblically responsible administrator of 403(b) plans, all participant money will be invested in the Timothy Plan family of mutual funds. Timothy Plan maintains a rigorous filtering process ensuring securities (stocks/bonds/etc.) in its mutual funds do not promote activities that are contrary to traditional, biblical values.

Who is eligible?

The employer has flexibility in determining critera for eligibility. A church can adopt a plan for the pastor and any employee who receives earned, taxable income (W2). This includes both full and part-time employees.

What are the tax advantages?

There are several tax advantages to the participant. For example, contributions by the employer are not subject to Social Security or income tax. Participant contributions are tax sheltered and not subject to tax until distributed. Roth contributions are made after you've paid your taxes, therefore withdrawals, including growth, are not taxed at the time of retirement distribution. Rollovers from other eligible retirement plans will not incur a tax. And for ministers, they may have additional retirement benefits with a housing allowance.

How expensive is it to set up this retirement plan?

The Master’s Plan is a third-party administrator of employer sponsored retirement plans for churches and select other 501(c)3 ministries that meet certain criteria. Since The Master’s Plan only serves churches and select non-profits, all plans are designated as 403(b)7 plans with limited provisions, according to the employer-directed plan documents. The Master’s Plan provides its services at no cost to the employers or participating employees.