Ministry Plan Overview
While the term “Ministries” is quite broad, some of the more common forms of non-profit ministries include daycares, pregnancy centers, and counseling centers. In order to be considered eligible for a 403(b)7 retirement plan the ministry must be a 501(c)3. If operated, controlled, or supported (as determined by the IRS) by a church it could fall under a church 403(b)7 plan.
What makes this plan unique?
The Master's Plan will work with each employer to help set up a customized 403(b) 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 ministry can adopt a plan for the executive director 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 taxed upfront and 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.
Robin K. Bryant
Happy to Assist You
Robin Bryant is qualified as a Tax-Exempt & Governmental Plan Administrator.
It has been my privilege to work for the Timothy Partners Ltd. since 2007. What I’ve discovered is, my desire to serve those who are serving in some type of ministry has been the most fulfilling since I started working at the Master’s Plan. Let me bring my knowledge of 403(b) retirement plans to your church or ministry and help you plan for the future.