FAQ
MBA Miscellaneous
Do the 403(b) regulations affect MBA savings accounts?
No. MBA savings accounts are not part of the 403(b) plan and are not affected by the regulations.
Please note that AG Financial Solutions has several attractive investment options that offer both solid returns and that help the Kingdom. Click here for additional information.
What does a church need to do if they have no retirement option for their pastor?
After some prayerful consideration, decide what the church can afford to contribute for the pastor’s (and other staff’s) retirement. If you will be using MBA as the exclusive service provider, the first steps you need to take are:
- Complete the sole service provider written plan template with service agreement located on the AG Financial Web site. Start complying with the terms you have established.
- Mail the completed plan template to MBA.
- Send deferrals to MBA in a timely manner.
- Establish administrative procedures so that you do not exceed contribution limits.
I am an AG minister who currently has only secular income. I do volunteer work in the church. May I contribute to the MBA plan?
No. You must have compensation from ministry to participate in the MBA plan.
Do 403(b) plans apply to part-time employees?
A church may offer retirement benefits to part-time employees if it wishes.
If your ministry is an NQCCO, you should check rules on universal availability of deferral contributions and on nondiscrimination in employer contributions.
Will it be possible to roll an IRA into our MBA 403(b) account?
Yes. You can roll traditional IRA accounts to the 403(b) account. If you have 403(b)'s from other providers, 401(k) accounts, governmental 457 accounts, and profit sharing accounts, you may be able to roll those to MBA, too. Contact our rollover specialist at 888.247.7385.
Does AG Financial represent a church using the MBA plan and is being audited by the IRS?
AG Financial does not provide legal representation to churches. AG Financial can give guidance in an IRS audit related to our 403(b) plan.
Are rabbi trusts still available? How do the 403(b) regulations affect them?
Rabbi trusts in a 409A plan (unfunded deferred compensation plans) are still available for retirement contributions that exceed 403(b) contribution limits. Please note that 409A plans are extremely restrictive in both contributions and distributions. Not complying with contribution elections could cause the entire balance to become taxable. The assets in a 409A plan are subject to the creditors of the employer until actual distribution at retirement. You should max out contributions to a 403(b) plan before considering a rabbi trust.
Is the spouse of a credentialed minister eligible for clergy housing allowance after the passing of the credentialed minister?
No, the surviving spouse is not eligible for clergy housing allowance on that deceased spouse’s account distributions. If the surviving spouse is credentialed and has his/her own account, a housing allowance can be declared on distributions from that account.
Read more about clergy housing allowance here.
How long does it take to set up an MBA 403(b) account for an employee?
The employee has an account with MBA once we receive an enrollment form and the first retirement contribution. A letter welcoming the employee to membership is sent a few days after the account is opened.