403(b) Regulation Resources for Churches & QCCOs
This information applies only to churches and QCCOs* who exclusively use the Servant Solutions Retirement Plan
The Servant Solutions Retirement Plan that your organization (i.e. church or QCCO) provides to its ministers and employees is a valuable benefit as you seek to retain talented, energetic staff. Servant Solutions is prepared to provide information to help your organization understand and comply with requirements that apply to this plan so that your organization and plan participants avoid adverse tax consequences.
The IRS published regulations that fully took effect on Jan. 1, 2009. These regulations - which impact all 403(b) plans, including church plans - are not difficult to implement if your organization’s retirement plan is solely the Servant Solutions Retirement Plan. In fact, to become fully compliant, most organizations will need to invest less than an hour. Below, you will find explanations of the regulations along with resources that will help you move toward compliance.
Written Plan Document Requirement
The Servant Solutions Retirement Plan is operated as a retirement income account program under Internal Revenue Code Section 403(b)(9). Organizations that provide a 403(b)(9)-type plan must maintain written documents that describe all material plan provisions. Servant Solutions provides general plan documentation for the Servant Solutions Retirement Plan. However, since each organization in this plan has flexibility related to certain plan provisions, your organization must develop and maintain additional written rules and procedures that address:
Which employees are eligible to participate in the retirement plan; and
What contributions the organization will make on behalf of employees.
Servant Solutions makes compliance easy!
To help you with this, Servant Solutions has prepared an Eligibility and Participation Schedule to document the additional written rules and procedures, unique to your organization, that relate to your use of the Servant Solutions Retirement Plan. In order to comply with the regulatory requirements, your organization needs to take the following steps:
Step 1
Annually review your copy of the Servant Solutions Retirement Plan.
Step 2
Print, complete and retain a copy of the Eligibility and Participation Schedule to document the additional written rules and procedures, unique to your organization, that must be addressed. This Schedule is considered part of your organization’s retirement plan. You do not have to send this Schedule to Servant Solutions but you do need to be sure to keep an updated copy in your files at all times. And, of course, you will need to be sure that you follow the rules and procedures that you set out in the Schedule.
If you make contributions to the Servant Solutions Retirement Plan as your sole retirement plan, that is all you have to do. But if you use multiple vendors, or if any contributions were made after 2004 to a 403(b) vendor that was not authorized to receive contributions on January 1, 2009, there are special rules you have to follow. Please review the information prepared for organizations using multiple vendors.
Servant Solutions has been dedicated to enhancing the financial security of our plan participants for over 70 years. Our employees stand ready to help you. Please contact us or call (800) 844-8983 for additional information.
Additional resources:
* Does not include Non-Qualified Church-Controlled Organizations (Non-QCCO defined – click here)
This information should not be considered tax or legal advice. Servant Solutions stands ready to assist your organization as you work with your legal and tax advisers by providing resource information that you and your adviser may find beneficial.