Roth
In what has been described as the single greatest development in the retirement plan marketplace, 2006 introduced the Roth provision for 403(b) and 401(k) plans. The Roth provision works in tandem with the traditional pre-tax components of the plan but adds the flexibility of after-tax retirement contributions. With no cost to the plan sponsor to include the Roth provision, plan participants have new flexibility when it comes to planning for their "Future-Funded Ministry" (retirement).
What is a Roth 403(b)?
- Contributions can be made after-tax like a Roth IRA
- Contributions and earnings can be distributed tax-free, subject to a five year minimum holding period and normal Roth age guidelines
- Contributions to Roth 403(b) are not subject to same income level limitations as regular Roth accounts
- Roth 403(b) has no earned income requirements as do Roth IRAs
- Click here for downloadable Roth information sheet.
- Click here to access a video and PowerPoint presentation on Roth.
Who should consider utilizing a Roth 403(b)?
- All 501(c)(3) ministry organizations, especially Missionary Organizations
Why is a Roth 403(b) such a great opportunity for ministries?
- All ministries have employees who will benefit from the future tax savings
- This is the best retirement planning option for most missionaries
- Combination of 403(b) and Roth 403(b) gives your employees the greatest flexibility in planning for their Future-Funded Ministry
How does our Ministry implement a Roth 403(b)?
- The ministry has to agree to offer a Roth 403(b)
- Your retirement plan documents need updating to reflect Roth 403(b) option
- The ministry payroll system will need to be updated for Roth 403(b) contributions
- Ministry employees need to be educated with how to incorporate the Roth 403(b) into their retirement planning
- A re-enrollment will be done to engage the ministry employees into the Roth 403(b) plan and to complete all necessary paperwork
For more information on how Envoy Financial can serve your ministry, contact Jeff Gater at (888) 879-1376, ext. 209 or by email.
Envoy Financial
Trusted Advice Along The Way