The FCMM Retirement Plan offers unique advantages to employers and participants. The plan is open to all staff members of qualifying employers (churches and ministry organizations), including both clergy and staff.
Advantages
Multiple Investment Options
Whether the Member prefers to rely on investments via FCMM-provided funds (Options C, D, E), to self-manage through mutual funds, or some combination of methods, a wide variety of investment options is available.
Flexibility
The participant can choose how funds are drawn as benefits, allowing for annuity benefit and/or continuing self-management of resources, if desired.
Housing Allowance Tax Benefit
FCMM can, and does, designate retirement distributions as tax-free housing allowance for funds that were contributed while the individual was eligible for housing allowance (includes ministers and commissioned missionaries). Only a church plan is able to do so. This housing expense exclusion from income is subject to the same IRS limits that apply to housing allowance during employment. And the exclusion applies to the member only, not to the surviving spouse.
Minimal Administrative Work
FCMM handles much of the employer administrative work, record keeping, and compliance - at no cost to the employer.
IRS Compliancy
FCMM maintains the retirement plan as a compliant 403(b)(9) church plan, which enables all the benefits and flexibility allowed to denominational plans.
Death Benefit
If a participant dies before beginning to draw retirement income benefits (annuity), the full amount value is available to designated beneficiaries. If a participant dies after starting benefits, any funds not included in an annuity are available to the beneficiaries.
Advising
Objective counsel for investment decisions and retirement planning is available.
Jeff Englin, formerly a wealth management consultant, serves FCMM as our Manager of Advisory Services. He can provide assistance in determining which investment Options may best fit a participant's goals. He is familiar with all of our investment options and can give special assistance in selecting specific American Funds and Biblically Responsible funds. Contact Jeff at jeff.englin@fcmmbenefits.org or 952.853.1751.
Portability
If an account holder moves to another FCMM-participating ministry, it’s simple for the new employer to make contributions to the account. If a participant leaves an EFCA ministry, the account may not receive additional contributions but can stay with FCMM for the participant's eventual retirement benefit.
Low Fees
Generally, FCMM’s fees are lower than, or competitive with, most investment programs. See the current year's Form 41 Retirement Plan Fees in Forms & Documents.
