The IRS allows retired ministers to have distributions from our plan declared as ministers' housing allowance. This gives ministers significant tax savings during retirement. This option is not available through secular 403(b) plans or IRAs.
Making employer contributions online is simple.
This online tool will help minimize monthly data entry and maximize accuracy as you make retirement contributions on behalf of your employees.
Learn moreThe following individuals may participate in the AGFinancial 403(b) Retirement Plan:
An eligible employer is:
As a sponsor of a 403(b) plan, you are required to submit a written plan document to be in compliance with IRS regulations. Review the Plan document below.
Choose one of the Agreements below to define eligibility, benefits, and compensation for your ministry employees. Completion of the appropriate Agreement will establish your ministry’s 403(b) plan.
Note: QCCO = Qualified Church-Controlled Organization. NQCCO = Nonqualified Church-Controlled Organization. See full list of 403(b) Terms & Definitions for details.
The Service Agreement, which is included in the written plan forms above, is used to identify the roles and responsibilities of the employer and AGFinancial. Without the Agreement, the employer is solely responsible for compliance for all 403(b) administrative and regulatory issues. Additionally, with our exclusive written plan and Agreement, we will be responsible for administration of hardship distributions and plan loans.
If you have questions or need additional information, please reach out. Our team is here to help.
The Internal Revenue Service issued regulations on 403(b) plans that generally became effective on January 1, 2009. These regulations impact all 403(b) plans and are comprehensive on the governance of such plans. The regulations require, among other things, a written plan document that contains the material plan provisions. The consequences of not meeting the regulations can be severe. The penalty for failure to comply may include, but is not limited to, immediate taxation of each participant’s balance. If AGFinancial is your exclusive service provider, your compliance implementation can be easy. NOTE: Compliance may be more complex if using multiple providers.
403(b) Guidelines of Administrative Responsibilities
AGFinancial and MBA provide multiple administrative functions for compliance with regulations; however, some administrative functions are your responsibility as the employer (fiduciary). Download a listing of primary responsibilities based on your organization type. The checklists are provided as a convenience and should not be returned to us or the IRS.
Download Qualified Church-Controlled Organizations (QCCO) Guidelines
Download Nonqualified Church-Controlled Organization (NQCCO) Guidelines
For assistance, contact us at 800.622.7526 or email us at 403bregs@agfinancial.org.
