A defined-contribution plan, a type called a 403(b)(9) Qualified Church Plan is funded by salary deferrals and employer (temple) contributions made by qualifying employers or rolled over from other qualifying 403(b) church plans. The plan is eligible for parsonage/minister housing allowance in retirement for ordained clergy. Fidelity Investments plan number 71280.
This type of an account allows money to be placed in an investment portfolio to grow tax deferred until retirement or in a “tax-sheltered annuity contract.” It is similar to a 401K plan, but is governed by different rules. Though the ACC plan is not subject to ERISA, we are guided by ERISA rules, in addition to specific rules the IRS has created for 403(b)(9) plans (specifically for clergy).
Our plan presently allows each participant to choose from a platform of funds designed to provide flexibility in building their own retirement (thus the nomenclature – Participant-Driven Plan). Section 403(b)(9) is the Internal Revenue Code Section, which sets forth the rules for this kind of plan.
Supplemental Plan: a non-qualified deferred compensation plan in which funds invested are held in an irrevocable trust for the benefit of participants for retirement purposes. Sometimes referred to as the "Rabbi Trust" due to its origin with the IRS, the Supplemental Plan allows employers to make contributions that may exceed the annual IRS maximum contribution limits for eligible compensation. Salary deferrals and temple contributions in this plan are eligible for parsonage/minister housing allowance in retirement as of 2018. Fidelity Investments plan number 71281.
Important Note: Distributions from the Supplemental Plan are paid out quarterly over a five-year period for account balances over $23,000 (in 2024). Distributions are based on a formula as defined in the Plan document and begin upon retirement, unless a distribution deferral form (see Forms page) is on file with the ACC Office one year prior to retirement.