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Your 403(b) plan now has more flexibility!

By Billy Norden

At the November 11, 2021 BOBS board meeting, the board approved a restated plan document for the RCA 403(b) Retirement Program. Along with a number of regulatory items, the board approved to eliminate the need for ministers and foreign missionaries to take installments of employer contributions over a period in excess of ten years upon retirement. Effective 1/1/2022, ministers and foreign missionaries will be eligible to receive his or her employee and employer contributions following his or her retirement (see section 7.1 of the plan document). Previous to this change, ministers and missionaries had to spread out their withdrawals of employer contributions over a period of ten years. Now you can make your withdrawals in a way that fits your financial plan in retirement. 


Section 12.3 was added to address what happens when an Adopting Employer no longer meets the criteria to participate in the Plan. An employee of a church or adopting employer who no longer meets the criteria to participate in the plan can either keep their money in the plan or roll it out directly to a retirement plan that is eligible to take such a transfer. In other words, just because a church leaves the RCA and may no longer be eligible to adopt the plan, does not mean that leaving creates a distributable event for the employees of the church. The distributable event only takes place upon that employee’s termination of employment from that church/employer. (In this situation, an employee refers to a lay employee or non-RCA minister).