Deferred compensation plans allow employers to provide benefits beyond those allowed through typical retirement plans. GuideStone offers a church 409A Non-qualified Deferred Compensation plan.

A 409A Non-Qualified Deferred Compensation Plan is designed as a church plan for employees of churches and Qualified Church Controlled Organizations (QCCO). Contributions remain assets of the employer until distributed to participants, and the plan uses a “rabbi trust” to hold the assets.

Who can participate?

The employer has maximum flexibility to determine who can participate.

Types of plan contributions

• Employer (non-elective) contributions.
• Salary deferral (elective) contributions.

Eligibility

The employer has maximum flexibility to determine who is eligible.

Potential Tax advantages

• FICA taxation generally applies when contributions are made to the plan.
• Federal income tax applies when the benefits are paid or made available.
• Installment payments permit taxes to be spread over several years.
• No contribution limits other than reasonable compensation rules.

To learn more about the retirement plans available to your specific organization, email us or call us at 1-888-98-GUIDE (1-888-984-8433).