AG Financial Solutions

The MBA 403(b) plan is an employer-sponsored plan. Your AG employer may provide for salary deferrals and an employer-paid retirement benefit, but the contribution must be remitted on a church check. Personal checks that are designated for the MBA 403(b) plan as deferrals and employer-paid contributions will be returned to the member.

With proper certification from your AG employer, we can accept personal checks for traditional after-tax (not Roth) contributions. Click here to download a contribution form.

Self-employed ministers, such as evangelists, and chaplains may remit their contributions by personal check but they must list that they are an evangelist or chaplain on the employer line provided on the contribution form. MBA may require certain certifications from self-employed ministers and chaplains.

See also: What is a self-employed minister for retirement contribution purposes?

If you file or are eligible to file a schedule C for your federal income taxes on your ministry related income, you are probably eligible to contribute to MBA as a self-employed minister. Consult your own tax advisor to determine your self-employment status in this situation.

Credentialed ministers file taxes as self-employed for income and SECA tax purposes. This alone does not qualify you to file as a self-employed minister for contribution purposes. Most ministers are still considered an employee of a ministry.

Yes. Federal law limits the maximum that can be contributed. You can see those maximums here.

No minimum contribution is required to open or continue participation in the plan. It is in your best interest to contribute as much as possible so that you can be more financially secure in retirement. However, any amount that you contribute to your retirement account is helpful. See "How can I find more money for retirement contributions?"

* If you are an AG church or AG ministry employee, you must follow these steps to contribute from your paycheck:

1. 1. Complete a Salary Reduction form provided by your ministry or located here. This is to be given to your payroll staff.
2. 2. Your ministry employer will mail deferrals to us on their check on our approved form located here. Your ministry employer can include any employer-paid retirement benefit (if any) to us at the same time.

* If you are a self-employed minister (filing schedule C or eligible to file schedule C with your federal tax return on ministry-related income) or a chaplain, you may complete a contribution form located here and mail it with your check to us. You must indicate that you are a self-employed minister or chaplain on the form. We will require certain certifications from you.

You can see when a retirement contribution has been made for you and how much your contribution was by reviewing your account on our Web site here. You will need your PIN number to access the account. If you do not have your PIN, call us at 800.253.5544 or by requesting it online when you attempt to log in.

Most ministers and ministry employees cannot send in a 403(b) retirement contribution by personal check. It must be sent in by the employer or an employer check. You may make traditional after-tax (not designated Roth amounts) contributions by personal check with approval from your employer. You may get the after-tax contribution form here.

403(b) plans were designed by law to be employer-sponsored plans. There are also rules on maximum contributions based on your includible compensation that must be followed. Your AG ministry employer is required to monitor contributions as well as other plan requirements. However, with your employer's certification, you may send in personal checks for traditional after-tax contributions. These after-tax contributions are taxed before the contributions are made; the contribution portion of a distribution is not taxed upon withdrawal.

If you are a self-employed minister who is eligible to file a federal Schedule C for your ministry-related income, or if you are a chaplain, you are considered your own employer. With proper certifications and verifications, you may send in personal checks for your 403(b) contributions.

Qualified distributions from designated Roth 403(b) accounts are income tax-free. For some people, this may offset the pre-tax advantages of a pre-tax deferral contribution. Many financial experts advise making contributions to a Roth-style account if you believe you will be in a higher tax bracket at retirement than you are when the contribution is made. Factors that determine if you are in a higher tax bracket during retirement are higher income and changes in the tax brackets by Congress. You may have other reasons for making an after-tax contribution including the following:

• Estate planning
• Desire for income tax-free payments to your spouse or other beneficiary

Consult your own tax or financial professional to determine what type of contribution is best for you. Click here to read more about Roth 403(b) contributions.

There are several different types of contributions available. Though there are differences, they all have the advantages of tax savings. Employer-paid contributions are a benefit totally paid by the employer. All other contribution types come from payroll deductions.

A qualified distribution from a designated Roth 403(b) account provides tax-free income at withdrawal. A distribution from a traditional after-tax 403(b) account provides tax-free income on the contribution portion (the earnings are taxable). Also, there are no distribution restrictions on a traditional after-tax contribution - you can take a distribution at any time (however, it is taxable and a 10% early withdrawal penalty may apply). Click here to read more about Roth 403(b) contributions.

All AG credentialed ministers who are self-employed may participate in the MBA 403(b) plan. You, your employer, and each of your legal or tax professionals should carefully consider whether you meet the qualifications of being self-employed.

As an evangelist or other self-employed minister (eligible to file a schedule C with your federal income tax return on ministry income), you must complete an MBA contribution form and send it to us with your personal check. You must indicate that you are a self-employed minister on the employer line of the form. MBA may require verification of your self-employed status.

You must complete an MBA contribution form and send it to us with your personal check. You must indicate that you are a chaplain on the employer line of the form. MBA will require verification of your chaplain status.

As much as you can within the 403(b) contribution limits. Many say that you need to look at your income from the last five years of your working wages and take about 80% of that to help determine your cost of living at retirement. That can be a lot of money. You need to have as much saved as you can to help support you once you are no longer working. Click here for a calculator tool to assist you in retirement contribution planning.