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It's that time of year when a lot is said about contributing to an IRA. But is it the best solution for a minister?
The Nazarene 403(b) Retirement Savings Plan generally is more advantageous to the church employee than an IRA. Legislation for 403(b) plans was designed for employees of nonprofit organizations and has more liberal provisions in the Internal Revenue Code. Some of the advantages of the Nazarene 403(b) plan include (a) higher contribution limits, (b) several investment options, (c) participants may borrow against some 403(b) funds, (d) withdrawals for retired ministers may be designated as "housing allowance" for retirement housing purposes, and (e) ministers' contributions are not taxed for Social Security purposes. Qualified individuals may want to consider maximizing contributions to the Nazarene 403(b) Plan before contributing to an IRA. The IRA plan then may be used to save additional tax-deferred funds for retirement. Feel free to request additional information from the This email address is being protected from spambots. You need JavaScript enabled to view it. .