Flexible Retirement Savings that Lets You Choose

The Tax-Deferred Retirement Account 403(b)/Roth 403(b) (TDRA 403(b)/Roth 403(b)), is a defined contribution employer-sponsored retirement savings plan that allows eligible employees to set aside a portion of their compensation on a pre-tax basis and/or on a Roth (after-tax) basis to save for retirement. By contributing to a 403(b), participants are able choose a savings strategy that fits their plans for retirement based on how they want to be taxed.

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TDRA 403(b)/Roth 403(b) Resources:

TDRA 403(b)/Roth 403(b) Overview Brochure

Enrollment Form

Rollover Transfer Overview Tip Sheet

Member Resource Book

TDRA Historical Returns

Enjoy competitive, guaranteed base returns.

This product offers a guaranteed base interest rate of 3-6%, reducing your downside risk. Each account also qualifies for Good Experience Credits (additional interest earnings) when designated by Pension Fund’s Board of Directors.

Use as an estate planning tool. TDRA 403(b)/Roth 403(b) participants may choose any beneficiary or beneficiaries. In doing so, it is possible to save an inheritance for children or other heirs, above and beyond retirement needs, within IRS guidelines for maximum contributions. Each participant (or their heirs) will ultimately receive the balance in the account. With the Roth 403(b) you can leave a tax-free inheritance to your beneficiaries.

Easily move funds from another 403(b) plan. Pension Fund welcomes rollovers/transfers from eligible participants. Those eligible can request to make a rollover contribution to the TDRA 403(b) or Roth 403(b) in the form of a distribution from an eligible retirement plan, including:

Pre-Tax TDRA 403(b):

Traditional IRA
Pre-tax 403(b) account
Pre-tax 401(k) account
Pre-tax 401(a) account
Pre-tax 457(b) account (governmental only)

Roth 403(b):

Roth 403(b) account
Roth 401(k) account
Roth 457(b) account (governmental only)

“I would suggest making monthly contributions to Pension Fund’s Tax-Deferred Retirement Account...Small amounts add up quickly!”

Rev. Sandra Gourdet, Retired Missionary

Key Benefits

Employer may make contributions to the pre-tax TDRA 403(b) as a benefit to the employee
Participants may make contributions through salary reduction
Contributions are made pre-tax (lowering your taxable income) and/or on a Roth (after-tax) basis
Higher contribution limits than with IRAs
Allows clergy to claim housing allowance on their pre-tax contributions in retirement
Competitive base return
Increases with Good Experience Credits
Complements other retirement savings plans
Is an estate planning tool- choose your beneficiary. With a Roth 403(b) funds can be received tax-free.

Download a copy of our Tax-Deferred Retirement Account 403(b)/Roth 403(b) brochure HERE.

TDRA Attributed Returns

Curious to see how your funds could grow with a TDRA 403(b)?

* Base rate listed is the average of the quarterly base rates for the year. Good Experience Credits listed in the year it was received in accounts. Annualized return includes compounding. Data above represents historical data and may not be indicative of future performance.

Is the Tax-Deferred Retirement Account 403(b)/Roth 403(b) right for me?

What are the benefits of a 403(b)? One of the major benefits of participating in our TDRA 403(b)/Roth 403(b) product is the flexibility to choose how you want to save for retirement. Choosing the pre-tax TDRA 403(b) lowers your taxable income while saving in the Roth 403(b) allows you to be taxed at the time of contribution so that you can withdraw funds tax-free in retirement. Also, contribution limits are higher than with other retirement accounts (like IRAs).

Because TDRA 403(b)/Roth 403(b) participants can choose beneficiaries to receive the funds, the TDRA 403(b)/Roth 403(b) may be used as an estate planning tool to leave an inheritance. Another potential benefit includes easy, pain-free contributions. Employers may make contributions to the pre-tax TDRA 403(b) in addition to salary, and participants may make contributions through salary reduction to both the TDRA 403(b) and the Roth 403(b).

What are the potential drawbacks of the TDRA 403(b)/Roth 403(b)?

Like many retirement products, the TDRA 403(b)/Roth 403(b) requires that funds stay in the account until retirement. There are some exceptions to this rule, however, such as separating from employment, becoming disabled or encountering an eligible financial hardship (such as medical expenses, funeral expenses and natural disasters).

Also, similar to other products, the TDRA 403(b)/Roth 403(b) is subject to Required Minimum Distributions (RMDs) after a member turns age 72, unless he or she hasn’t retired from qualified employment.

Additionally, those close to retirement may want to consider that there is a required five-year waiting period before participants are allowed to take a distribution. This option is not ideal for those who are less than five years away from retirement (or when one wishes to withdraw funds).

Am I eligible to participate in the TDRA 403(b)/Roth 403(b)?

If you’re employed by an organization affiliated with the Stone-Campbell (Restoration) Movement, you’re eligible to participate in the TDRA 403(b)/Roth 403(b). These organizations include, but are not limited to, congregations, wider ministries, seminaries, and universities and colleges associated with the Christian Church (Disciples of Christ), Christian Churches/Churches of Christ, or Churches of Christ in the United States. A minister who is self-employed can also become a participant in the TDRA 403(b)/Roth 403(b) as long as ministerial services are being performed for compensation.

How do I get started?

In a participation agreement between your employer and Pension Fund, your employer will define eligibility requirements for participation of itself and its employees in the TDRA 403(b)/Roth 403(b). You or a representative of your employer can contact Pension Fund directly to set up a participation agreement at 866.495.7322 (PFCC) or pfcc1@pensionfund.org.

Tax-Deferred Retirement 403(b)/Roth 403(b) FAQs

What are Good Experience Credits?

Good Experience Credits are additional interest earnings. Each year, the Pension Fund Board of Directors reviews reserves required for current and future benefits. When reserves exist above what is required, the Board of Directors may declare Good Experience Credits for all Tax-Deferred Retirement Account 403(b)/Roth 403(b) participants. Over time, these extra earnings can make a significant difference when saving for retirement.

What are contribution limits for the TDRA 403(b)/Roth 403(b)?

Internal Revenue Code rules limit the total amount of contributions that may be contributed to the TDRA 403(b)/Roth 403(b) on a participant’s behalf by the employer. The limit on elective deferrals (what the participant chooses to contribute) is $20,500.* If you’re age 50 or older, you may contribute an additional $6,500 per year under the catch-up contributions.

TDRA pre-tax and Roth 403(b) contributions are aggregated under this limit, along with any pre-tax Member Dues to the Pension Plan.

Can I withdraw funds prior to retirement?

Distributions are restricted until the earlier of:

Termination of employment
Age 59 ½
Disability
Financial hardship
Death

When must I start taking distributions?

Distribution of accounts must begin no later than April 1 of the calendar year following the calendar year in which the participant turns age 72, unless he or she has not retired from qualified employment.

What Funds Can I Rollover Into the Account?

Pension Fund welcomes rollovers from eligible participants. Those eligible can request to make a rollover contribution based on the following:

Pre-Tax TDRA 403(b):

Traditional IRA
Pre-tax 403(b) account
Pre-tax 401(k) account
Pre-tax 401(a) account
Pre-tax 457(b) account (governmental only)

Roth 403(b):

Roth 403(b) account
Roth 401(k) account
Roth 457(b) account (governmental only)

Can I convert my existing TDRA to a Roth Account?

Yes. An in-plan Roth rollover is permitted to convert your existing TDRA to a Roth account within the Plan. This is a taxable event. An in-plan Roth rollover is permitted even if you are not otherwise eligible to take a distribution from the TDRA.

Upon distribution, you must satisfy a 5-year holding period that applies separately to each conversion to avoid a 10% early distribution tax on the converted amount, unless an exception applies.