June 2, 2023
Exploring Alternative Markets: Religious Organizations are Plan Sponsors Too!
How would you like a payroll slot in which you can sell life insurance too?
403(b)(9), or “religious retirement,” plans are tax-advantaged retirement savings plans intended to meet the specific needs of faith-based organizations, or those with 501(c)(3) status and an alternative market in which you can open payroll slots. All employees are eligible to participate in 403(b)(9) plans, however, the employer has flexibility in deciding to whom they will offer the plan and employer contributions are optional.
How do 403(b)(9) church plans differ from 403(b)?
Unlike 403(b) plans, 403(b)(9) plans permit life insurance. This means you can bring all the pieces of the puzzle together into a strategy that could address their most important concerns.
Use these to tell the story:
Does it get any sweeter?
It does. Participants can name the organization as the beneficiary of their annuity death benefit and legacy death benefit. Additionally, National Life Group will match donations upon death of the insured, not to exceed 2% of the base FlexLife IUL policy face amount, up to a maximum of $30,000 per policy, which is paid directly to the charity.
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FlexLife Charitable Matching Gift Flyer (also available on CoBrand on Demand)
Why choose a 403(b)(9) over a 401(k)?
403(b)(9) plans allow ordained, licensed or commissioned minister employees to take non-taxable distributions for housing allowance in retirement.
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Comparison with 401(k) Plan
Plus, these additional resources:
Competitive Advantages Designed for You
Top 10 Reasons to Add Fixed Indexed Annuities from NLG to Your Plan
403(b) Myths and Realities
Educate & Empower (also available on CoBrand on Demand)
Church plans also qualify for the Slot Bonus Program and e$bee Awards
To participate, the Slot Bonus Request Form must be completed and submitted prior to submitting the first application.
Slot Bonus Program Rules
Employer Information Form
Please consult the Employer Rules of Engagement for a framework of how you may engage with payroll slots.
