1. What kind of retirement plan does my ministry have? (Back to Top)
Your ministry has sponsored a 403(b) retirement plan. This plan is defined in section 403(b) of the US Internal Revenue Code. A 403(b) retirement plan is specifically designed for non-profit organizations and has even more benefits for those working in ministries where some staff may have “Ministerial Status” (licensed, ordained or commissioned). Churches and Mission Sending organizations are examples. Your ministry’s retirement plan allows you to put away money for retirement. This is called a Voluntary Contribution or an Elective Contribution. You ministry’s plan may also include an employer contribution in the form of an Employer Basic or an Employer Matching. Contact your ministry’s plan administrator for the details.
2. How do I participate in the plan? (Back to Top)
Your ministry will notify you when you become eligible to participate in the plan. There may be an age and or length of service requirement before you can participate. Once eligible you will have an individual enrollment appointment with an Envoy Financial LifeStage Specialist (registered representatives of Lincoln Investment Planning, Inc.) who will walk you through the process and provide you will information, guidance and counsel.
3. Who is Envoy Financial? (Back to Top)
Envoy Financial is a non-profit ministry headquartered in Colorado Springs, CO whose mission is to work with ministries around the world in the areas of retirement plans and group benefits. Envoy Financial exclusively serves the Christian community and has done so since 1994, helping you to make wise stewardship decisions about your “Future Funded Ministry Plan™”.
4. Who is Nationwide? (Back to Top)
Nationwide is the largest provider of retirement plan solutions in the U.S. They will act as the custodian for your ministry’s retirement plan. As custodian, Nationwide is responsible for holding your retirement account money and coordinating the investment of your money with various mutual fund families. Nationwide also will provide you with account statements and online access to your account information, and the ability to make investment changes on your own.
5. Who is Lincoln Investment Planning? (Back to Top)
Lincoln Investment Planning, Inc. is a registered Broker/Dealer. All Envoy Financial LifeStage Specialists are registered representatives of Lincoln Investment Planning. Lincoln also acts in a custodial capacity for retirement accounts, such as 403(b) and Individual Retirement Accounts (IRAs).
6. How much money can I put into my retirement plan? (Back to Top)
Each year the amount of money you can contribute to your retirement plan account increases. For 2007, the limits are as follows: you can contribute 100% of your compensation up to $15,000. If you are age 50 or older, you can contribute an additional $5,000. If you have been with the ministry 15 years or longer, you can contribute an additional $3,000 (for 403(b) plans only). The total then for someone who qualifies in each area is $23,000. Click the link to see the 2008 Contribution Limits
7. What if I am on a tight budget and do not have much to contribute to my retirement plan right now? (Back to Top)
The most critical decision you will make is not how much you contribute, but that you begin to contribute. We see the importance of contributing something now, rather than waiting with the hope of doing more later.
8. How do I find out if my Ministry makes any employer contributions into my retirement account? (Back to Top)
Your employer and plan administrator will inform you. Your enrollment book, provided by your employer or available on line, also details the specifics of the plan. Look for the Summary Plan Description in the booklet. When you have your enrollment appointment with an Envoy Financial LifeStage Specialist (registered representative of Lincoln Investment Planning, Inc.), they can also inform you of the details of your ministry’s retirement plan.
9. How is the money in my retirement plan account invested? (Back to Top)
Retirement plan monies in a 403b plan are limited to mutual funds or annuities.
10. What does “No-Load” Mutual Fund mean? (Back to Top)
A “No-Load” Mutual Fund does not have a sales charge for either putting money into the fund or transferring money out of the fund. A desirable characteristic!
11. What does “NAV” mean? (Back to Top)
“NAV” stands for Net Asset Value. This term is also used to refer to mutual funds that do not have sales charges for getting into or out of the fund. It is another way to refer to a “No-Load” mutual fund.
12. What if I do not want to be responsible for managing my money? (Back to Top)
One of your choices is to have your account actively managed by a separately retained and compensated professional money manager. Your employer has decided to provide a choice of money managers for you to choose from. These choices can be detailed for you during your LifeStage Specialist enrollment appointment. The reasons given for using this service include:
1. Lack of knowledge about investing
2. Too busy, or out of the country, to pay close attention
3. Want more protection from the ups and downs of the market
13. How often should I review my investments? (Back to Top)
You should review your investments at least annually. An annual review appointment can be scheduled with an Envoy Financial LifeStage Specialist (registered representative of Lincoln Investment Planning, Inc.).
14. Do I put in money Before-tax or After-tax? (Back to Top)
Traditionally, a 403(b) retirement plan has only allowed for money to be set aside for retirement on a “Before-tax” basis. You set aside a certain amount of money and this lowers your gross income. Federal, State (and FICA (or SECA in the case of someone with ministerial status)) taxes are assessed on a lower amount of income. January 1, 2006 brought the addition of the Roth provision to the 403(b) tax laws. If your ministry has added the Roth provision to your retirement plan, then you can set money aside on an “After-tax” basis. An Envoy Financial LifeStage Specialist can help you do the tax calculation to determine which is suitable for your retirement planning needs.
15. Can I transfer my other retirement accounts into this retirement account? (Back to Top)
A 403(b) retirement plan does allow for you to transfer assets from other retirement accounts such as 401(k)s, other 403(b)s or IRAs. You can review your other retirement accounts with an Envoy Financial LifeStage Specialist (registered representative of Lincoln Investment Planning, Inc.) to determine if transferring your other accounts will be in your best interest.
16. How is all the paperwork handled? (Back to Top)
Envoy Financial will prepare all of the paperwork for you. Your job will be to review for accuracy, sign and return. Here are the steps:
1. Paperwork filled in and emailed to you password protected
2. Download and review, making any required corrections, if any
3. Sign and fax to Envoy Financial
4. That’s it, you are done!
If you cannot receive emails or emails with attachments, please notify Envoy Financial and other arrangements will be made.
17. What if I have a question about my retirement account or investments? (Back to Top)
Please contact Envoy Financial’s Ministry Services department at (888) 879-1376, ext. 1 or via email.
18. Can I get money out of my retirement plan? (Back to Top)
Upon retiring from your ministry, you can begin to take distributions from your retirement account. An Envoy Financial LifeStage Specialist (registered representative of Lincoln Investment Planning, Inc.) can help you structure those distributions in the way that is best for you. Under normal circumstances you may not take money out of your retirement account until age 59½ or you may incur penalty taxes. Distributions before age 59½ can be made in the cases of death, disability or financial hardship. You may also leave the money in the account to grow until such time as it is needed or you reach age 70½. Some plans allow zero net cost interest loans. Check with your plan description or call Envoy Financial for clarification.
19. How do I change the amount of money that I am putting into my retirement plan? (Back to Top)
Contact the Envoy Financial Ministry Services department at (888) 879-1376, ext. 1 or via email. The necessary paperwork will be sent to you from Envoy Financial. Once completed and signed, please fax the paperwork back to Envoy Financial. We will contact your ministry and instruct them as to the new amount you will be contributing.
20. How do I change my contact information? (Back to Top)
Please contact Envoy Financial’s Ministry Services department at (888) 879-1376, ext. 1 or via email.
21. How do I change my beneficiary designation? (Back to Top)
Please contact Envoy Financial’s Ministry Services department at (888) 879-1376, ext. 1 or via email.
22. Can I check my retirement plan account information online? (Back to Top)
Yes. Online and telephone access is available 24/7. Once you have conducted your enrollment appointment with an Envoy Financial LifeStage Specialist (registered representative of Lincoln Investment Planning, Inc.), an email will be sent to you with information about setting up online access to your retirement plan account. Please be aware that it can take a couple of weeks to establish your online account.
23. If I am still working at age 70½, do I need to take Required Minimum Distributions (RMDs)? (Back to Top)
No. If you have reportable income, in other words you are still working, you do not have to start taking Required Minimum Distributions until you stop working. This is a unique provision under the 403(b) tax laws only.
24. What happens if I leave the ministry? (Back to Top)
Envoy Financial will continue to serve your retirement planning needs. Generally when you leave the employment of your ministry you have three choices regarding your retirement plan money:
1. Leave the money invested in the current plan
2. Roll it over into your new employer’s plan
3. Set up a personal retirement account through Envoy Financial
It is important that you contact Envoy Financial when you change employers or retire from the ministry. It is also important to contact Envoy Financial when you change where you live or any of your other contact information changes. This will assure continued and uninterrupted service. As our CEO says, “We are joined at the hip until you want a separation”.