Churches and Ministries
3 Steps to Establish Your Plan
As a sponsor of a 403(b) plan, you are required to submit a written plan document to be in compliance with IRS regulations. Follow our simple three steps below to complete your 403(b) written plan document and establish your plan:
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Confirm Eligibility The following individuals can participate in the AG 403(b) Plan:
- An Assemblies of God credentialed minister who is self-employed within the meaning of Internal Revenue Code 414(e)(5)(A)(i)(I). Example: An evangelist would qualify.
- Assemblies of God credentialed ministers who provide services to any other organization unrelated to the Assemblies of God to the extent that the services are in connection of ministry (example: a chaplain). The employer may make contributions on behalf of the minister or the minister may make contributions to the plan directly.
- Employees of eligible employers.
An eligible employer is:
- An Assemblies of God church
- The General Council of the Assemblies of God
- A District Council of the Assemblies of God
- Any other organization that is controlled by or associated with the Assemblies of God which is tax-exempt under 501(c)(3) of the Internal Revenue Code.
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Access the AG 403(b) Plan document Review the Plan document here.
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Customize your plan Choose one of the templates below to define eligibility, benefits, and compensation for your ministry employees. Completion of a written plan template will establish your ministry’s 403(b) plan.
To get started, select the template that best represents your situation:
- Template 1. If Assemblies of God Ministers Benefit Association is your exclusive service provider and your ministry is a church, church school (daycare through the 12th grade), or qualified church-controlled organization (QCCO), click here for the written plan template with service agreement.
- Template 2. Assemblies of God Ministers Benefit Association is one of multiple service providers and your ministry is a church, church school (daycare through the 12th grade), or qualified church-controlled organization (QCCO), click here for the written plan template with service agreement.
- Template 3. Assemblies of God Ministers Benefit Association is your exclusive service provider and your ministry is a nonqualified church-controlled organization (NQCCO), click here for the written plan template with service agreement.
- Template 4. Assemblies of God Ministers Benefit Association is one of multiple service providers and your ministry is a nonqualified church-controlled organization (NQCCO), click here for the written plan template with service agreement.
The Service Agreement is used to identify the roles and responsibilities of the employer and Assemblies of God Ministers Benefit Association. 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, call toll-free 866.621.1787 or email us at 403bregs@agfinancial.org.
*This information and the information contained in links are not considered legal or tax advice. AGFinancial is available to give guidance and assistance to your ministry and your ministry’s legal and tax professionals. Check with your own advisors to ensure you have satisfied all the IRS 403(b) regulation requirements.
403(b) Compliance Regulations
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.)
For assistance, contact us at 800.622.7526 or email us at 403bregs@agfinancial.org.
View an excerpt regarding the regulations from Richard Hammar’s Church Law & Tax Report newsletter here
For Independent Contractors click here