Roth 403(b) Option Now Available to Nazarene Ministers

2022 news 3Effective July 1, 2022, Pensions and Benefits USA (P&B) will offer a Roth 403(b) as part of the Nazarene 403(b) Retirement Savings Plan, according to Kevin P. Gilmore, executive director. The Roth 403(b) will join the traditional 403(b) as a choice for future planning by Nazarene ministers.

“P&B is committed to periodically reviewing the Nazarene 403(b) Retirement Savings Plan to make sure it continues to help meet the retirement and financial goals of our ministers,” Gilmore said. “With the Roth 403(b), pastors will have another means by which they can save for retirement.”

Roth 403(b) contributions and withdrawals are taxed differently from those of the traditional 403(b) plan. With the Roth 403(b), ministers can designate all or a portion of their deferral as “Roth contributions.” These are made on an after-tax basis and are included in current taxable income. Roth 403(b) distributions, however, are tax-free if they are part of a “qualified distribution.” A qualified distribution is one taken at least five tax years from the year of the first Roth contribution and after the participant has attained age 59½, become disabled, or is deceased. Additionally, Roth distributions may be inherited tax-free if certain conditions are met.

Traditional Nazarene 403(b) contributions are set aside pretax and distributions at retirement to ministers may be received as tax-free housing allowance, within IRS guidelines.

Participants may contribute to both the after-tax Roth 403(b) and the pretax traditional 403(b) so long as they do not exceed the total IRS contribution limit for that year.

“We anticipate young ministers who have more time to accumulate tax-free earnings or who want to leave tax-free money to heirs will be more interested in the Roth 403(b),” Gilmore said. “We urge ministers to consult with their tax advisors to determine what works best for them, since everyone’s financial situation is unique.”

To learn more about retirement saving options in the Nazarene 403(b) Plan, visit the Nazarene 403(b) Retirement Savings Plan page at or contact Fidelity Investments at 866-NAZARENE (866-629-2736).

Note: Investing involves risk, including risk of loss.