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Tax Deferred Annuity (TDA)

The Tax Deferred Annuity (TDA) gives employers another way to make tax-deferred retirement contributions for you. TDA contributions can:

  • supplement an employee’s other sources of retirement income;
  • help pastors who live in parsonages build assets for housing in retirement—sometimes called an “equity” allowance; and
  • thank an employee with an extra bonus to reward extra effort, express appreciation or celebrate an anniversary or other event.

TDA contributions are flexible. Contributions can be:

  • an amount equal to a percentage of your pay – either stand-alone or to match your contributions to The Annuity Supplement (TAS);
  • a set dollar amount each month; or
  • a one-time amount or a bonus gift.

TDA contributions can be as little as $50 a month. You do not pay federal income taxes on these employer contributions or earnings on the contributions until payments begin in retirement. At retirement, you may be in a lower tax bracket and may be eligible for other tax benefits.

You can choose to invest 100% of your contributions in one or more of MMBB’s investment funds. If no fund(s) choice is made, all contributions will be invested in the Balanced Fund, the most highly-diversified fund of the options. Loans and withdrawals from TDA accounts may be available before retirement to eligible members.

To see a full list of investment options available, please visit Our Funds section.