Acts 29 Retirement Plan

Acts 29 has built a 403(b)(9) Associated Plan to help every church within the organization access the highest quality resources at the lowest possible cost. This will help larger churches who are looking to push down expenses and stay on top of regulatory concerns while also allowing smaller churches access to institutional-level investments at the same price. 401(k) and 403(b) plans are both similar retirement plans for employees in that they are funded with pre-tax dollars. Both have the same annual contribution limits. The primary difference between the two is that 401(k) plans are for for-profit companies whereas 403(b) plans are for nonprofit companies.

A 403(b) plan is a tax-sheltered retirement plan for people who work for nonprofit companies and religious church organizations. Contributions to our 403(b)(9) plan are deductible on your federal income taxes. The money comes out of your gross salary and goes directly into the 403(b)(9) plan untaxed.

The contribution limit for a 403(b) plan is $22,500 in 2023 and $23,000 in 2024. Individuals who are age 50 and older have the ability to contribute an additional $7,500 annually, according to the IRS regulations.

The Acts 29 retirement plan is available to all Acts 29 churches in the United States. A church enrolls in the plan, not individuals. Each church must apply as a church first, using one point of contact for the church’s retirement plan. After this initial church enrollment step is complete, the church may then determine which staff members to add to their organizational plan. Once a church is enrolled, the plan can be offered to your church pastors and staff on payroll.

A Guidestone representative will walk you through the eligibility of your church staff. You should consider the following:

• Each church must decide whether to include only full-time staff or also include part-time staff as eligible for retirement benefits. If the decision is made to include part-time staff, you will need to consider how many hours they must work to qualify (we recommend 20+ hours a week), and you may also consider the years of service. 
• Each church will need to consider if you want to provide an employer match for employee contributions. If so, at what percentage? Additionally, you will need to determine how long employees must work for your church before becoming eligible for matching contributions. Please note that an employee must complete 500 hours of service over 3 consecutive months OR 1,000 hours worked for employer contributions. Temporary employees may sign up to make their own contributions, but cannot receive any employer match dollars until they reach the hours indicated above. Please refer to this article on retirement benefit regulations.

The Acts 29 403(b)(9) plan offers investment options through Guidestone MyDestination funds  and we are excited to offer Vanguard investment options as well. 

You may rollover other tax-qualified accounts into the plan, such as IRAs and other 403(b) plans. If your plan offers a Roth option (preferred), then you may rollover outside Roth plans. A representative from Guidestone will advise you with rolling over existing retirement plans, as you enroll into the Acts 29 Associated Plan.

Beacon Pointe assesses all provider fees on a quarterly basis and they are determined through the size of the overall plan. All fees are paid by a small percentage from each participant account that is within the entire Associated Plan. Participants in Acts 29’s Retirement Plan can expect the following fees, billed every quarter.

• Beacon Pointe Fee: 22 basis points (a basis point is 1/100 of 1-percent, or .001)
• Guidestone Fee: 23 basis points
• Total Fee: 45 basis points annually (By comparison, other plans in the marketplace charge 75-90 basis points annually.)

*All return information is net of fees.*

Eligible ministers may have the church or other qualifying organizations designate all or a portion of their income as housing allowance. It is the minister’s and the employer’s responsibility to determine eligibility for housing allowance and to adhere to all applicable laws and regulations regarding such designation. The amount a minister can claim as housing allowance must be the lesser of:

• The housing allowance designated by their church or other qualifying organization; or
• Actual housing expenses (including mortgage payments, utilities, property taxes, insurance, furnishings, repairs, and improvements); or
• The fair rental value of the home (furnished, plus utilities).

At retirement, eligible Ministers for Tax Purposes may ask GuideStone to designate all or a portion of their retirement income as a housing allowance. A housing allowance can be designated for income only when that payment relates to contributions made as a result of the participant’s own earnings from service as a minister.

Acts 29 and Beacon Pointe will be utilizing the services of Guidestone to custodian your account.

Acts 29 has sought the help of institutional advisors to run the plan through Beacon Pointe Advisors. This Retirement Plan Service Group has been recognized for the past five years by the National Association of Plan Advisors as a top-service group and helps maintain 401(k), 403(b), 403(b)(9), and 457(f) plans, with a focus on nonprofits and faith-based organizations. With over 20 billion dollars of client assets, Beacon Pointe offers pastors and their staff access to resources typically held for highly affluent families.

We strategically partnered with Beacon Pointe to slash high management fees and offer more retirement investment options through Vanguard funds. They hold themselves out to be a fiduciary under the Employee Retirement and Income Security Act of 1974 (“ERISA”), watching out for their client’s best interests. As our fiduciaries, they will review our plan’s assets and be in constant communication with Guidestone to maintain low management fees, as well as ensure legal compliance.

Whether you are a large church or a small church, the Acts 29 Associated Plan will not only provide your church with resources that were not obtainable prior to our relationship with Beacon Pointe, the joint effort will lower costs and help other church start-ups that would like an institutionalized plan. It carries forward the mission of being a church helping other churches and has a fiduciary monitoring every component putting your best interest first.