Benefits Administration

The Church’s Role as Plan Administrator

MMBB benefit plans are Section 403(b)(9) plans under the Internal Revenue Code. IRS regulations governing these plans give the church employer specific responsibilities as the plan administrator.

For employers whose only 403(b) plan offering to employees is the MMBB 403(b) plan (i.e., you do not maintain any other 403(b) arrangements for your employees), compliance is easy. MMBB will take care of most, if not all, of the administrative responsibilities involving the MMBB plans. Employers who maintain other 403(b) arrangements, in addition to participating in MMBB’s plans, will have significant additional administrative and legal responsibilities to ensure that their employer-sponsored 403(b) plans are in compliance.

Failure of an employer to have a legally compliant 403(b) plan document in place could result in immediate taxation to employees of all contributions made on their behalf. Similar adverse tax consequences would result if a 403(b) plan is not maintained in accordance with the ongoing administrative requirements prescribed by the regulations, creating a significant financial burden for your minister and staff. For additional information, you may contact us at 403bregs@mmbb.org.

From the 2012 MMBB Guide for Church-Related Employers. For the full guide, please visit our Download Documents & Resources section.