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Church wants to use tax credit

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Good morning, this falls under the "please don't shoot the messenger" heading.

A prospect for a non-ERISA 403(b) Plan, which is a church, is asking whether they can take advantage of the "tax credit under the Secure Act".  We don't see how this could benefit an entity that does not pay any taxes in the first place, but we were still asked to research the question.  Maybe we are missing something.


Thank you.

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Agree with you and Bill Presson.  BTW, Non-Electing Church 403(b) plans are different than Non-ERISA 403(b) plans.   

If you accept this client, and are sure it is a "church," be sure to use a plan document format intended for church plans and not one intended only for a Non-ERISA 403(b) sponsored by a NonProfit which is not a church.  A good thing to check would be a provision for employer contributions.  Non-Electing (which translates into Non-ERISA) Church plan documents have employer contribution provisions in them and a document for a NonProfit sponsoring a Non-ERISA 403(b) does not contain employer contribution options.

Have a great day!


Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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