AG Financial Solutions

A service agreement is very reasonably priced—it’s FREE! As part of our ministry, MBA does not charge fees to the employer for any reason.

An NQCCO ministry may however, have to incur separate costs for nondiscrimination testing if they have highly compensated employees. If you consult a legal or tax professional for advice on your plan, you may have additional costs.

MBA staff can guide you through the process if you call or email us. Once we receive a completed document, we will review it to make sure it is complete and that there are no obvious errors with the provisions. Ongoing compliance to the provisions in your written plan will be your responsibility.

If you plan to offer multiple vendors, then we recommend you get approval from a third party if your plan is compliant with the new regulations since you will have more complex administration responsibilities.

Written plan templates are available now, click here.

The service agreement defines the roles and responsibilities of the employer and MBA. Without a service agreement, the employer is responsible for compliance with all 403(b) administrative and regulatory issues. A service agreement clarifies the responsibilities including those responsibilities MBA has. Additionally, with an MBA exclusive written plan and agreement, MBA will be able to be responsible for administration of hardship distributions and plan loans.

The revenue procedure that contains the model plan to which you refer states that adoption of the model plan language by an entity other than a public school does not have the same effect as a private letter ruling. So there is no special protection in adopting the model plan language for any organization other than a public school.

Also, missing from the model plan (even with IRS’s comments for changes applicable to churches) is the provision for the alternative 415 contribution limit for churches. The model plan also limits contributions to elective deferrals. There are also some other important items that are missing.

MBA’s employer plan templates and plan document have a lot of flexibility as well as features available to churches that the IRS’s model plan does not have.

MBA's plan document is on the AG Financial Web site, you can find it here.

Yes. This document becomes a part of your written plan. Also, we need to have the written plan on file for a basic review and to have on file for reference purposes when you contact us.

If you want MBA to be your exclusive service provider and administer hardship distributions and plan loans, you must complete our service agreement and send it to us.

Your previous employer should establish its own written plan. Your current employer does not need a written plan if it has not contributed to any 403(b) plan since December 31, 2004.

We would suggest talking to your current ministry employer to see if they would offer a 403(b) benefit for employees. If they only allowed deferrals and no employer contribution, it could still help in meeting your financial goals for retirement. Have them call AG Financial for assistance.

If the authority to adopt similar plans or agreements resides with the official board then they must formally approve it. If the board has allocated such powers to a senior official of the church or ministry, then that person’s approval is all that is necessary.

If you are uncertain where authority lies for approval of such agreements, it should be given to the board for its approval.

We will have a Summary Plan Description (SPD) for MBA’s portion of the plan available soon. It would be a best practice to give employees who are eligible to participate in the plan a copy of the SPD and a copy of your portion of the written plan. In lieu of giving employees with internet access a copy of our SPD, you could direct them to it on this Web site.

It is also a best practice that any service provider’s written plan be distributed to employees who request one. As an alternative, you can direct the employees with Internet access to this Web site once it is posted.

When the completed documents are received by us and it appears to be satisfactory, we will send you an acknowledgment letter along with a copy of the signed document. We will return it or have someone call you if there are some problems with it.

MBA cannot give legal advice on your rules for eligibility, participation, and contribution benefits.

The plan template for employers needs to be completed. If you need guidance in completing it, an MBA staff member can assist you. A signed service agreement should be mailed to MBA, too. The template for employer rules, the exclusive service provider agreement, and multiple service provider agreements are available here.

Because each ministry’s finances and needs are different, MBA cannot maintain the employer’s rules for eligibility and participation. You will find that MBA’s employer’s templates are simple to complete and use.

Use the sole service provider template. You must still list the former service providers on the addendum that is provided, but what matters is that you are using MBA exclusively going forward.

The proper governing authority of your ministry (board of directors, president, or senior pastor if permitted to act in such a capacity) should review and approve the agreement. It should then be signed by the authorized staff member and mailed to MBA. The service agreement becomes effective once it is signed by MBA and a copy is returned to you.

Definitely! And we say, "Thank you for thinking of your staff".

Just take action to amend the plan with the proper approvals. If you’re using MBA’s plan template for eligibility, you can complete a new template and check the box to indicate that it is an amended plan. You should amend the plan prospectively and not retroactively.

The written plan is completed once unless you amend the provisions of your plan. Ongoing compliance (e.g., following terms of plan, ongoing administration of the terms of your plan, timely remittance of deferrals, monitoring contribution limits, etc.) is ongoing. Please remember that much of the other compliance issues will be done by MBA especially if we are your exclusive service provider.

If the ministry has not contributed to a 403(b) plan since December 31, 2004, there is no need to complete the paperwork until it is ready to begin contributions.

If the ministry has contributed to a 403(b) plan since December 31, 2004, it is required to have its own written plan.