A Simple Guide to Church Retirement Plans (403(b)(9) plans)
Looking for a retirement plan for your church but not sure where to begin?
You’re not alone. Many church leaders face the same question, and the options can feel overwhelming — 401(k), IRA, 403(b)… the list goes on.
But there’s one option designed specifically with churches in mind: the 403(b)(9) church retirement plan. How is this plan better for churches than other retirement plans?
Let’s break it down together.
What is a church
retirement plan?
A 403(b)(9) plan is a type of retirement plan built exclusively for churches and organizations with 501(c)(3) church status. While it works like other retirement plans in many ways, it includes unique benefits that make it especially valuable for pastors and church employees.
Before we get into the details, let’s look at who qualifies.
Who Can Participate in a 403(b)(9)?
If you’re an employee of a church or a church-affiliated organization, you’re generally eligible.
One key difference: unlike traditional 403(b) plans, where almost everyone must be allowed to join, 403(b)(9) plans give the employer flexibility. Your church can set requirements like age or years of service. So, if your church already offers a plan, check whether there are any specific eligibility rules.
Curious how a 403(b)(9) plan would benefit your church staff? We'd love to talk.
Why 403(b)(9) plans are ideal for churches
Here are some of the biggest advantages that set 403(b)(9) plans apart.
Flexibility for Employers
Churches get to decide who can participate, instead of being locked into “one-size-fits-all” rules.
Housing Allowance (Tax Savings!)
Ministers can use the housing allowance to reduce their taxable income. And in retirement, withdrawals can also be designated as housing allowance — meaning ministers can continue enjoying those tax benefits for life.
Lower Costs and Less Red Tape
403(b)(9) plans are typically non-ERISA, which means no annual Form 5500 filing, no expensive audits for larger plans, and no discrimination testing headaches. This saves money and reduces administrative work for the church.
Extra Tax Savings on Contributions
Contributions made to a 403(b)(9) plan are not subject to SECA (self-employment) taxes. Since SECA runs about 15.3%, this feature alone can mean big tax savings for ministers.
Ready to switch to a 403(b)(9) plan?
If you’re looking for a retirement plan that fits the unique needs of your church, the 403(b)(9) is worth serious consideration. It combines flexibility, meaningful tax benefits, and simplicity — all while being tailored specifically for ministries.
At TruthPoint Financial, we specialize in helping churches and faith-based organizations design retirement plans that serve both your staff and your mission. We work with you to offer the lowest fees possible and to create an investment menu that aligns with your church’s needs and values.
More than that, we believe in walking alongside you with truth, transparency, and trust. No jargon, no hidden costs — just real people who care about helping your team prepare for the future.
Frequently Asked Questions
About Church Plans
A 403(b)(9) is a retirement plan designed specifically for churches and ministry organizations. It allows employees—both ministers and non-ministers—to save for retirement while offering special benefits tailored to church workers.
403(b) Plans:
- Are for 501(c)(3) tax-exempt organizations
- Must abide by universal availability
- Usually fall under ERISA regulations, unless the employer chooses Non-ERISA
- Are more expensive and timely to administer if they fall under the ERISA guidelines
- Protect participants from fiduciary wrongdoing if ERISA is chosen
- Restrict employer involvement
403(b)(9) Plans:
- Are for 501(c)(3) tax-exempt organizations, but more specifically for churches or church designated ministries
- Permits the employer to choose who participates in the plan
- Always falls under Non-ERISA regulations
- Are easier and less expensive to administer, but participants are not protected against fiduciary wrongdoing
Employees of churches, denominations, and certain church-affiliated organizations are eligible—including pastors, ministry staff, and even part-time employees (if the church chooses to include them).
Very. 403(b)(9) plans give churches flexibility to decide who’s eligible to participate. Employers can set guidelines—such as minimum age or years of service—so the plan fits the unique needs of their staff and ministry.