You know your faith-based organization or church needs a retirement plan. But you want a plan provider that understands your unique needs.
You’re not looking for a cookie-cutter 401k plan, where customer service treats you like a number, not a person. You want to feel seen, heard, and understood. You want the best retirement plan for you and your employees so that you can be sure that the money God has entrusted to you is stewarded in the best way.
Why You Need a 403(b) Retirement Plan
As a Christian ministry or church, it's essential to have a retirement plan that is tailored to your unique needs. Why? Because you’ll have access to benefits and advantages that are specifically designed for your ministry or church. And you’ll work with a plan provider that can help you make sure you get the most out of these benefits.
You can get all of this with an Envoy Financial 403(b) retirement plan. 403(b) plans are specifically designed for nonprofits, religious organizations, school districts, and governmental employees (people like you!).
Here are some benefits that you may be able to access when you have a 403(b) Retirement Plan
The Foreign Earned Income Exclusion IRS rule allows missionaries working abroad to qualify to exclude their earned wages from U.S. federal taxes. This amount changes annually with inflation. Use the IRS’s Interactive Tax Assistant tool to see if you are eligible for this exclusion.
The Roth 403(b) retirement plan option allows employees to put after-tax money into their retirement plan, giving them the huge advantage of taking their money out tax-free! Please be aware that if the employer offers matching contributions, the money the employer puts into the account is not tax-free and taxes on this money will have to be paid in retirement.
A 403(b) plan also offers15-year catch up contributions. If an employee in a 403(b) plan has at least 15 years of service, they can add an extra $3,000 to their retirement plan each year. This is in addition to the annual contribution limit. It’s a great option, especially for those who may be behind in their retirement plan savings!
The 403(b) retirement plan is less expensive to administer because it does not fall under The Employee Retirement Income Security Act of 1974 (ERISA) and does not have to undergo periodic reviews, known as discrimination testing. This saves on audit, form preparation, and testing requirements.
While 401(k) retirement plans are generally subject to ERISA, 403(b) plans sponsored by church plans and governmental plans are exempt from ERISA. Such plans are commonly referred to as Non-ERISA plans.
It’s important to note that Non-ERISA 403(b) plans do not involve employer contributions and involve voluntary plan participation only. If an employer chooses to make contributions to an employee 403(b) account, they are subject to ERISA guidelines.
If Your Ministry is a Church, Always Choose a 403(b)(9) Retirement Plan
As experts in 403(b) retirement plans, it’s important to note that churches should always choose 403(b)(9) retirement plans. 403(b)(9) plans provide specific benefits for churches and pastors that should be taken advantage of.
You don’t want to miss out on these 403(b)(9) Church Retirement Plan benefits
Most plan sponsors are not aware of the specific 403(b)(9) church retirement plan rule that makes the minister's voluntary contributions pre-SECA tax in addition to state and federal income tax. Ministers can save 15% in SECA taxes by using a church retirement plan instead of other savings plans.
Another benefit of 403(b)(9) plans for churches is The Minister's Housing Allowance, which is one of the greatest tax benefits available to ordained, licensed, or commissioned ministers.
Housing Allowance permits ordained, licensed, or commissioned ministers to take non-taxable, ministerial housing allowance distributions in retirement from their 403(b)(9) plans—a big tax break. Ministers can contribute to their plan tax free. They can also receive distributions in retirement tax free. Again, this is a huge benefit.
Why Choose Envoy for Your 403(b) Retirement Plan?
We have extensive experience and knowledge in 403(b) plans
For almost three decades, Envoy has solely focused on the distinct retirement needs of those in ministry. We have extensive knowledge and experience in the rules, regulations, and significant advantages of 403(b) plans for churches and faith-based organizations.
We understand your ministry’s unique needs
As industry experts in 403(b) and church retirement plans—and with a number of staff members who have served in churches or the mission field—we are specially qualified to understand your specific situation. Not only do we know the in’s and out’s of 403(b) plans, we also understand the unique audience that we serve (churches, faith-driven organizations, and individuals).
We help you align your investments with your values
As a fellow faith-based organization and leader in the faith-driven investment industry, Envoy knows the importance of stewarding the resources God has entrusted to us. That’s why we offer 403(b) investment options that align with your values.
We actively screen our investment models for companies that make ethical, responsible, and impactful decisions while limiting exposure to biblical conflicts, such as companies that support abortion, commit human rights violations, or profit from pornography.
Building a retirement or investment fund on biblical principles has never been easier, and now you can steward your money in a more God-glorifying manner.
Envoy Will Take Care of Your Retirement Needs So That You Can Focus On Your Ministry
At Envoy, our mission is to provide financial planning solutions to those who need to be funded in order to freely carry out God’s call on their lives, even after retirement.
Our caring staff treats you like a friend—a friend that will bend over backward to answer your questions, advise you and your staff, and walk with you through the process to make sure you’re completely at ease.
We equip you and your staff with financial wellness services so that you can confidently focus on what’s important—serving others.