Answer: IRS code section 403(b) allows all 501(c)(3) organizations, (churches, religious education organizations, health care, and charitable non-profit) to establish a pre-tax and tax-deferred employer sponsored retirement plan. The contributions may be made by just the employer, just the employee, or a combination of the two. *

Answer: Implementing Freedom 10 involves 4 on-line steps and then telephone enrollment appointments between your CMPs and one of our LifeStage Counselors who hold an NASD securities registration and are representatives of Lincoln Investment Planning, Inc., a broker dealer and ainvestment advisor. Step 4: Submit your application online and send your paperwork and invoice payment to Envoy Financial. See similar questions...

Answer: We understand that many ministries' budgets will not allow for ministry contributions into the retirement plan. Many plans will be voluntary only, meaning that they will only allow for the elective deferrals on behalf of the participants. Nonetheless, we believe there are some plan design principles that you may find interesting. Here are some guidelines to help implement an effective plan. * Participation is the first step toward understanding stewardship responsibility. See similar questions...

Answer: The employer's responsibility is to establish the plan via Board Resolution, to have in place either a full plan document or an adoption agreement, regularly withhold participant contributions, and send them in to the Custodian, if required, to submit the simplified 5500 form, and to not allow participants to over contribute. A ministry does not need to submit a 5500 form if a) the organization is a church; or b) the plan is a voluntary-only plan. * See similar questions...

Answer: 403(b) plans are best suited for ministry because they cost less to set up and administer than 401(k) plans, allow simplified reporting, and have special benefits for those with ministerial status that other types of plans do not have. Further, many ministers will be able to take distribution later in life as part of their housing allowance. Therefore, they will save taxes there, too. See similar questions...

Duke offers plan participants a wide range of investment options. These include money market, bond, fixed investments, asset allocation funds, equity income funds and stock funds. There are over 300 funds to choose from. All of Duke's retirement plan providers provide automated toll-free telephone services to help you keep track of your retirement assets. You may also access your account on the Investment Carriers page. See similar questions...

The 403(b) is a tax deferred retirement plan available to employees of educational institutions and certain non-profit organizations. Participants contribute to either annuity contracts with insurance companies, or invest in mutual funds. Contributions and investment earnings grow tax deferred until withdrawal (assumed to be retirement), at which time they are taxed as ordinary income. The name 403(b) refers to the relevant section in the Internal Revenue Code. See similar questions...

No, it is not a new type of plan. Designated Roth contributions are a new type of contribution that can be accepted by new or existing 401(k) or 403(b) plans. This feature is permitted under a Code section added by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), effective for years beginning on or after January 1, 2006. See similar questions...

You set aside money for retirement on a pretax basis through a salary reduction agreement with your employer. The money grows tax deferred until withdrawal at retirement. See similar questions...

The 403b is a tax deferred retirement plan available to employees of educational institutions and certain non-profit organizations. Participants contribute to either annuity contracts with insurance companies, or to mutual funds with mutual fund companies. Contributions and investment earnings grow tax deferred until withdrawal (assumed to be retirement), at which time they are taxed as ordinary income. Withdrawals before age 59 1/2 are subject to a 10% federal income tax penalty. See similar questions...

A 401(k) plan is a type of retirement plan offered by an employer under section 401(k) of the Internal Revenue Code. A 403(b) plan is a somewhat different type of retirement plan, which has many of the same features of a 401(k). Since Duke is a tax-exempt, non-profit organization and educational institution we can offer a 403(b) plan. See similar questions...

Select one of the University's three approved 403(b) Plan providers. 403(b) Plan provider information and applications for new accounts are available at the University Treasurer's Office and your Campus Personnel Office. Throughout each year, representatives from the carriers will be on campus to answer your questions. Please check with the University Treasurer's Office for more details on this. Determine the amount you want to contribute to the plan. See similar questions...

The 403(b) carriers offer different "funding vehicles." These vehicles may be Fixed Annuities, Mutual Funds, or Variable Annuities. Click here for a description of these funding vehicles which will help you understand their differences. Each provider may offer several investment funds for your choice. For example, a provider may offer Money Market, Stock, and Bond investments under their funding vehicle. You allocate your 403(b) contributions among the funds provided by your carrier. See similar questions...

Yes. All three of the University's approved providers currently offer a loan provision. Please contact the approved providers directly to obtain information on how the loan provision operates as well as current interest rates, repayment schedules, and any limits or restrictions on your 403(b) plan loan. See similar questions...

Yes. The University's 403(b) Plan accepts transfers and rollovers of other 403(b) accounts. There are also new rollover provisions that permit you to rollover funds between certain retirement plans in addition to 403(b) plans. You should carefully check with your prior carrier to identify any withdrawal restrictions and fees that may be applied to your transfer to this, or any other, 403(b) program. See similar questions...

You can generally move the vested portion of your account from one type of plan to another as long as the new plan accepts rollovers. Your after-tax contributions are only transferable between similar plans (for example, from a 403(b) plan to 403(b) plan), and you must move your money directly between plans. See similar questions...