(417) 221-9981 | (949) 900-0046 Service@KingdomFinancialInsight.com

You Asked.

We Heard You.

We Answered.

“Taking Responsibility for the Financial Health of God’s Chosen Leaders”

403(b)(9) Retirement Plan

Let our team design a robust plan that serves the needs of your church staff, and certainly the needs and wants of the Church leaders.

Pastoral Financial Guidance

Get much needed personal financial counsel from specialists with extensive experience who provide confidential guidance from “outside” your community and church body.

Team to Work Directly with Pastors

Serving the individual financial needs of a pastor and their family with ministry friendly and yet cutting edge ideas

Robust 403(b)(9) Plan

403b market, in general, is considered the "wild west" as the rules are sloppy and have been used and abused...not just by churches but everyone...in the majority of cases unintentionally. All 403b's are non-Erisa.

Coaching

Our expert team will help guide and support your church board and Pastoral staff. How? We do this by helping you to increase and grow in your financial and charitable sectors, so that your overall ministry can grow successfully. 

Charitable Education

Serving churches by providing often unknown or misunderstood charitable gifting strategies to their congregation. By doing so, we teach congregations WAYS to give that are tax-friendly that people don't know exist.

Why We Care About Your Future?

Kingdom Financial Insight has developed a team of leading advisors in the ministry field who undergo extensive training specifically targeting the retirement challenges pastors and ministers face, and who stay abreast of all current laws that are advantageous for pastors and ministers. Our network of advisors has over eighty years of combined experience in the financial services industry.

Introductory Consultation

Here at Kingdom Financial Insight, we offer a complimentary first-time consultation with one of our experienced advisors. They will review your current church retirement plan and overall financial picture. Our experts will help you determine if you are taking advantage of all the special benefits and laws that are available to pastors and people in the ministry field. We want to be your trusted partner and resource as you learn to navigate your retirement planning and ensure that your family’s future is financially secure.

What is The Process Like?

One of our trained experts will sit down with you and your team to walk you through your financial journey. Educating you about special laws and advantages you have working in the ministry field. After you have all the necessary education, we will determine what is the best option for your financial goals. Our goal is to set you up for financial security now and in the future. Your financial peace of mind will allow you to keep spreading the gospel.

1. What are the Funding Retirement Limits for 403(b)?

Participants of 403(b) plans have contributions limits as follows: 

  • 403(b) investors can elect to defer up to $18,500 of their salary and invest it into a 403(b) plan for the tax year
  • Plan participants over the age of 50 can contribute an additional $6,000 in so-called “catch up” funds for the year, while some 403(b) plan members can contribute an additional $3,000, if they have 15 or more years of experience in the field.

Here is how the 15-year model, known formally as the 15-year service rule, works.

If a 403(b)-eligible employee has at least 15 years of service, that employee may put away an additional $3,000 annually into his or her retirement plan, if the 403(b) plan contributions have not been maxed out in prior years. For example, in the previous year, that means a 403(b) plan contributor with 15 years or more on the job could stash away $21,500. 

There are limits to the 15-year contributions rule, but there are changes to the rule now.

Employers can also contribute to an employee’s 403(b) plan, much like a company can contribute matching funds to employee 401k plans. There is a limit however on what 403(b) employers can contribute.

2. What is a 403(b)(9) Church Plan?

A 403 (b)(9) plan is a defined contribution plan that is designed specifically for the unique needs of evangelical churches or church organizations. Even though it is similar to other 403(b) and 401(k) plans, 403(b)(9) plans are not subject to certain ERISA requirements, like annual 5500 reporting. The 403(b)(9) plans also offer retired ministers the ability to have retirement distributions designated as housing allowance. 

All employees are eligible to participate unless the plan specifically excludes them. 

The employer has some flexibility in determining which employees are eligible. For instance, the employer can have certain requirements like age and/or service requirements before an employee can participate in the plan.

3. What is Housing Allowance?

Basic Definition:

Individuals such as minister and members of the military receive an amount of money in compensation for basic living expensed for employment situations. Housing Allowance amounts are not taxable on your income tax but are subject to taxation under self-employment laws. Allowance for the members of the military and other job positions are determined based on various factors including the cost of living, geographic location, sale of pay, and dependency/marital status.

A housing allowance is a portion of clergy income that may be excluded from income for federal income tax purposes (W-2 “Box 1” wages) under Section 107 of the Internal Revenue Code. To be eligible, the pastor/clergy must be a “minister of the gospel” and be ordained, licensed, or commissioned by a church, convention or association of churches. 

Tax regulations specify that for the housing allowance to be excluded from federal income taxes it must be designated in advance of payment by official action of the employing body or integral agency. The designation must be in writing and should be contained in the minutes of the board or finance committee, if appropriate. The IRS would not accept housing designations that were self-approved. The housing allowance resolutions can be adopted or amended at any time. 

100% of compensation can be designated as housing allowance, but this does not necessarily mean that this is the amount which can be excluded from income taxes. IRS Publication 517 provides a definition of this housing limitation. 

If you own your home and you receive as part of your pay a housing or rental allowance, you may exclude from gross income the smallest of the following items:

  • The amount actually used to provide a home
  • The amount officially designated as a housing allowance
  • The fair rental value of the home, including furnishing, utilities, garage, etc.

For any specific question regarding Housing Allowance or how we can assist you in preparing for your retirement now for you in transitioning to your next ministry and making sure your retirement plan is in place now, please call our team today

4. What Makes Our Plan Special?
We heard the outcry from ministers and pastors across the country to have a plan that offers cutting edge investment choices, industry compliance, and custom design…we delivered:
– Over 30 industry-leading low-cost robust investment choices
– Plans can be designed for small or large churches
– Your plan will be customized for your specific wants and needs to serve you better than most other plans
– Your plan that meets the changing needs of the church retirement plan market to be not only “401K-like” in flexibility, but that meet strict industry compliance guidelines. We designed plans to meet your needs now and into the future. As Wayne Gretzky said, “I skate to where the puck is going to be, not where it has been”. We’ve looked into the future of church plans and we’re there. 
5. How Does Kingdom Financial Insight Work With My Board?
In most churches across the globe, the board can be your greatest ally or your worst nightmare. We want to come beside the church leadership and board to formulate plans to primarily gain a greater understanding of compensation guidelines and retirement plans. We team up with other industry professionals to give guidance where guidance is needed and wanted to help church boards make quality decisions to support those in ministry capacities both now and into the future

About Kingdom Financial Insight

Kingdom Financial Insight was “birthed” from a passion to properly align and guide ministers in financial literacy and plan for the future.

It is our job as financial advisors to look at every aspect of an individual’s financial situation and take what they have and give them OPTIONS for the future. America is a country that is the most “wealthy” in the world and yet a large percentage of people have no “options” at retirement…a travesty. With so MUCH information available and so many advisors, how is it possible to fail in this country? Without a plan the people perish…

(Hosea 4:6) – “My people perish for lack of knowledge”

It is our belief that the highest calling in the financial services business is that of working with people who have given their very lives for the sake of the gospel. Those people who lead churches carry the burden of the many lives they serve, but additionally the many aspects of leadership and management and the “business” of a church. They are required to manage relationships while making decisions that can affect those very relationships adversely if not handled correctly. When it comes to their personal affairs, they walk a fine line between maintaining privacy they need and getting the help they deserve. Finding the right mix of experience, confidentiality, and an accurate understanding of how a pastor’s pay and future retirement work can be challenging.

Most advisors in a church fail at one or more of these essential traits…the most important being confidential handling of private information. Much like the story of the battle in Exodus 17 where Aaron and Hur held up Moses’ arms and the battle was won; we come along side ministers to hold up their financial arms to free them up so they are able to focus on the battles they are called to win.

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Don’t Wait Any Longer. Start Creating Your New Divine Path Today! (Jeremiah 29:11)