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.
409A Non-Qualified Deferred Compensation Plan
This 409A Non-Qualified Deferred Compensation Plan is designed as a church plan for employees of churches. 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 the 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).