July 20, 2023
Exploring Alternative Markets: How do 403(b)(9) Church Plans Differ From 403(b)?
Did you know? National Life Group will match donations!
A 403(b)(9) plan, also known as a “religious retirement plan,” is a tax-advantaged savings program designed to meet the specific needs of faith-based organizations or organizations with 501(c)(3) status and an alternative market in which you may open payroll slots for employees. Employees are eligible to participate in 403(b)(9) plans. However, employers have the flexibility to decide to whom they will offer the plan, and employer contributions are optional. Employer contributions to a 403(b)(9) plan are tax-deductible and employees may defer a portion of their salary into the plan on a pre-tax basis. Contributions made in a 403(b)(9) plan are also tax-deferred, meaning they are not subject to taxation until withdrawn.
How do 403(b)(9) church plans differ from 403(b)?
In contrast to 403(b) plans, 403(b)(9) plans permit the purchase of life insurance. By bringing all the pieces together, you will be able to develop a strategy that could help them address their most pressing concerns.
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There’s More!
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.
