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Deferred Compensation Plans

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

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. Download the Annual Checklist for 409A Plan Sponsors.

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).