First in an Executive Series on the New 403(b) Regulations (Overview)

This is the first communication in a series about the "New World" of retirement plan for 501(c)(3) organizations and ministries.

Topic #1: Churches and other 501(c)(3) ministries

The new retirement plan regulations have detailed a new set of guiding principles and required actions that will impact all 501(c)(3) organizations. For some, it will dramatically change how you do your "retirement plan." For others, the changes will be more subtle, yet important.

Here is the first question: Are churches treated any differently than other 501(c)(3) organizations?

The answer is yes!

While there have always been some differences between church plans and others, the differences are now more pronounced. The differences are more pronounced in that the overall rules for church plan administration have not changed very much, at least on the surface. Rules and administrative regulations for other 501(c)(3) organizations have changed significantly. That having been said, the underlying regulatory themes are all pointing in a similar direction and "Best Practices" are now clearer for both sides of the organizational divide (i.e.: Church and Non-Church).

In our communication on this topic, it is difficult to jump back and forth between those items that impact churches, and those that impact the rest of us. Further, within identical ministry delivery segments -- Rescue Missions, Camps and Conference Centers, Missionary organizations, etc., -- one organization has "church" status with the IRS while a sister organization does not. It can be confusing, to say the least.

Fortunately, both groups come together when we include "Best Practices" in addition to legal "have to's."

Look for the next communiqué with an overview of the regulatory themes that are being played out while you are reflecting on how to comply. More importantly, reflect on what changes you need to make to comply with the regulations as well as follow a "Best Practices" mandate.

Blessings as we enter a whole new world together,

Envoy Financial
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