Retirement Plan

Q:  How much can I contribute?

  • The IRS allows you to contribute a maximum of $16,500 to your 403(b) account in 2010.
  • If you are age 50 or above, the IRS allows you an additional catch-up contribution of $5,500.

Ministers with 15 years of service in the C&MA may be allowed additional contributions; please contact Alliance Benefits for details.

 

Q:  What is the Housing Allowance Tax Advantage?

If you are a minister, the C&MA 403(b) plan offers you a significant tax advantage compared to most other plans. Since we have a "Church Plan" recognized by the IRS, it may be possible for you to claim a housing allowance on your pension benefits. If you qualify according to IRS Rules and Regulations, you can deduct certain qualifying housing expenses from your pension income. This will reduce the amount of taxes you must pay during your retirement. According to IRS rules, only a plan set up as a "Church Plan" can offer this feature.

 

Q:  Where can I get investment advice?

  • Since we at Alliance Benefits cannot legally advise you regarding your investment, we are pleased to refer you to Strategic Financial Partners, a Colorado Springs-based group of retirement planning specialists who understand the C&MA 403(b) plan and its unique advantages to ministers.
  • Strategic Financial Partners are available to consult with C&MA employees at no charge regarding your investment strategies. Contact SFP at (866) 963-1843.

 

Q:  What if our church contributes to more than one retirement plan?

Some employers contribute to multiple 403(b) plans on behalf of different employees. Based on 2009 IRS rules, this creates significant legal responsibilities for the employer.

  • If your church has never contributed to any 403(b) except the C&MA 403(b) plan, we handle all compliance issues on your behalf.
  • If your church has other 403(b) vendors (either current or former):
    • You are responsible to update your C&MA 403(b) Adoption Agreement with the names of other 403(b) vendors. This satisfies your church's need to provide a plan document (one of the compliance requirements)
    • However, you are still responsible to learn whether your current of former other 403(b) plans meet all other compliance requirements, even if your contributions have ceased
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Please Note: The information contained in this site is intended as a summary of benefits. It does not guarantee coverage. The Health Plan pays benefits for medically necessary services resulting from illnesses or injuries that are not work related, up to reasonable and customary limits. Even though a doctor recommends or performs a service for you or your covered dependent, this does not automatically mean the service is covered by the Plan. If you have any doubt about whether a proposed treatment or service is covered under the Health Plan, please contact the number shown on your ID card.