Church plans

[Guest Brian0925]

Please help alleviate some confusion in regards to "church plans" I am having difficulty getting my arms around the definition of a church plan. More to the point - is a church that establishes any type of plan (e.g. 403((b), 401(k), etc.) considered a church plan? Or is a church plan based on rules found under 414(e)?

Also, I am aware a Church which establishes a 403(b) can invest in retirement income accounts (403b9). Are all employees of the church eligible to investment in retirmeent accounts or only ministers for tax purposes.

Any additoinal information on this topic is appreciated.

Thank you

[Kirk Maldonado]

You may find some guidance here (I didn't check to see): http://www.irs.gov/pub/irs-pdf/p1828.pdf.

[Guest mjb]

414(e) is the definition of a church which can establish a qualfied plan. A church which establishes a 403b plan must meet the requirements for a church under IRC 3121(w)(3)(A). A retirement plan account can be established for all participants of a 403b plan sponsored by a church which meets the definiton of a church under IRC 403(b)(9)(B).