NWCBA Retirement Income Account Plan
Six Reasons Why You Should Consider Joining Our Plan
CB Northwest sponsors a Retirement Income Account Plan that is open to pastors and employees of member churches and affiliated organizations. The Plan is a “403(b) Plan” that has been specifically designed to meet the retirement needs of our members. Contributions are flexible. You decide how much you would like to save toward your own retirement. You make your contributions through convenient automatic payroll deductions. Your church or organization can also make additional contributions on your behalf if it chooses to do so.
The Plan offers some very real tax savings. Any contributions made will reduce the amount that is reportable to the IRS as taxable income for that year. The investment earnings on your contributions grow and compound on a tax-deferred basis. That is, you are not taxed on the contributions or earnings credited to your Plan account until they are paid out to you.
If you are an ordained minister, you may be eligible for even greater tax savings upon your retirement (any time after age 59-1/2) in that you may qualify to take retirement distributions as housing allowance.
All contributions are pooled for investment purposes. The Plan’s investments are handled by a professional investment broker appointed by the Plan’s Board of Trustees. The investment style is appropriate for long-term retirement savings.
If your church or association is also contributing for you, the total contributions you make or receive in a year cannot exceed certain IRS limits – on this Plan and any other retirement plans in which you may be participating. Please contact a licensed tax consultant to see how these rules apply to you and your church.
You are 100 percent vested in your Plan account at all times. That is, you will not forfeit benefits if you terminate employment with your church or organization for any reason.
You can choose from a full menu of benefit payment options – installment payments, lump-sum payments, or tax-deferred rollovers to IRAs or other 403(b) plans.
You name a beneficiary to receive the unpaid balance of your account upon your death.
Benefits for nonpastoral staff are generally payable as early as 90 days after they terminate employment with their church or organization, regardless of their age at the time. To help assure that pastors have an income when they retire, the Plan does not pay benefits to pastors before they turn age 59-1/2 (except in cases such as death or disability).