Ministry
Leader,
When
the Roth403(b) option became available early last year, it was unclear
whether those with Ministerial status still had to pay SECA tax on
those contributions or not. Well, we now have clarity and it is Good
News.
Ministers and Missionaries as voluntary contributors to Roth 403(b)
retirement plans are not required to pay SECA tax on those
contributions as the contributions are considered after-tax for both
State and Federal tax purposes.
Further
clarification:
Who Qualifies:
Those
with ministerial status (licensed, commissioned or ordained) who choose
to contribute to their ministry's Roth 403(b) retirement plan. This
includes overseas missionaries who have ministerial status either
directly through their missionary organization or through their local
church or licensing organization.
Result
of Qualifying:
1.
Reduced contribution towards SECA tax in the same manner as making a
Voluntary contribution to a Traditional 403(b) account.
2.
Earnings on the account grow tax free.
3.
Distributions are tax free as long as the account was set up at least 5
years prior to starting the distribution.
This
information is important for all Christian Ministry Organizations who
have those with ministerial status on staff and have implemented a Roth
403(b) plan for all staff. Be aware, many vendors do not yet have this
option available. Contact Envoy Financial for assistance in
implementing a plan for your ministry if you do not have one.
Also,
it is important to advise your payroll department or provider of this
information after you have implemented the proper paperwork to
implement a Roth 403(b) plan.
The Envoy Financial difference:
1.
Automated the employee experience for effective communication and
efficient delivery
2. Coupled
this with a high touch one on one personal service model
3. Surrounded
by a Christian Ministry Organization administrative support,
implementation and information team designed to free you to focus on
the tasks you do best
For
more information and assistance implementing a Roth 403(b) retirement
plan for your ministry, contact Dale DeMarchi
at (888) 879-1376, ext. 224 or by email. Our ministry
is to serve your ministry!
Blessings,
Bruce
Bruinsma
CEO
and Co-Founder
Envoy
Financial
Trusted
Advice Along The Way
Envoy
Financial 5350 Tomah Drive, Suite 2500, Colorado Springs, CO 80918
(888) 879-1376 • Fax: (719) 268-2716 • envoy@envoyfinancial.org • www.envoyfinancial.org
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