Approved Vendors for New 403(b)

[Guest usmcretd]

I am the treasurer of a small, independent church with 2 pastors. I am setting up a 403(b) retirement plan for the church. Currently each pastor uses a different financial advisor/investment company and I want to give them the flexibility to use their preferred company for the 403(b) contributions. Some of the contributions will be non-salary reductions with the option for each pastor to also elect salary reduction contributions. I believe each pastor wants to use a 403(b)(7) account (mutual funds). My question is what do I need to do to "approve" the vendor and what responsibilities does the church (meaning me as the plan administrator) have with respect to the vendors on an ongoing basis. I have been researching the topic and I find many references to information sharing agreements (ISA). It appears that these require that information be shared on a continual basis, which will present a real burden to me (I am a volunteer, not paid).

I have identified a company (Oppenheimer) to set up the plan with (the representative is my financial advisor as well as that of one of the pastors), but the other pastor uses a different company.

I also want to confirm that we do not have to offer participation in the plan to part-time employees (over 20 hours per week) for whom we do not pay benefits (e.g., no retirement contribution). This appears to be an exemption only applicable to churches.

[ETA Consulting LLC]

Just set up a 403(b)(7) account for each pastor. The universal availability rules do not apply since you're a church. Also, the 403(b) is not required to have a written plan because you're a church. Just ensure each pastor adheres to the contribution limits each year.

It's pretty much auto-pilot from there. No stress; not much potential for error.

Good Luck!