Featured Article
Cybersecurity and social media: How to protect your church's data -- and your own
Find answers to common questions regarding enrolling in MMBB plans
Benefit Plans Connect to a Senior Benefits SpecialistAs both a ministry and a financial organization, MMBB Financial Services understands how important it is for faith-based organizations to recruit and retain top staff. We understand how important it is for the staff of faith-based organizations to feel financially secure so they can put their full effort into the ministry. That’s why our plans are tailored to be affordable and flexible. No matter the size of your budget, MMBB Financial Services offers plans that meet your needs. MMBB offers three retirement plan options: Comprehensive Plan, Retirement Only Plan and Member Contribution Plan.
The Comprehensive Plan is an employer-funded, tax-deferred 403(b) retirement plan that includes a retirement savings plan, disability coverage and a death benefit. Your church or ministry pays a monthly premium based on a percentage of the employee’s total reported compensation.
The Retirement Only Plan is a stand-alone employer-funded tax-deferred 403(b) retirement savings plan. It can be customized with flexible vesting and matching options.
The Member Contribution Plan is an employee-funded, 403(b) retirement savings plan. The employee makes pre-tax or Roth contributions via a Salary Reduction Agreement.
Employers: If this is a new employer, they must complete an Adoption Agreement along with the 403(b) Plan Questionnaire identifying other 403(b) plans in which they participate. Any existing employer who has not contributed to any plan for a period of 5 years must complete an Adoption Agreement prior to enrolling in any plan. Any existing employer who is adding a new plan must complete an Adoption Agreement for the plan they are adding.
To obtain an adoption agreement please contact [email protected] or call 800.986.6222. Existing employers must use paper adoption agreements. Paper Adoption Agreements may be sent to the MMBB New York office via U.S. mail, fax or email to the New York office attention Mailroom. If faxing the number is 800.986.6782. If emailing the email address is [email protected]
Once the Adoption Agreement is approved, the employer is assigned an account number. At this point the employer is ready to start enrolling employees
Members: Once you decide to enroll in the plan your employer has adopted, you must complete Membership application (Form A-1) Once the application is completed and signed by both the member and the employer, send it to MMBB Financial Services, 475 Riverside Drive, Suite 1700, New York, NY 10115-0049, Attention Mailroom, or fax it to 800.986.6782 or email to [email protected] for processing. Beneficiary forms must also be completed, signed and returned at this time. The initial contribution to the Plan(s) is invested in the Target Date Fund based upon the member’s expected retirement age. Following the initial contribution, members may make investment choices from any of the MMBB investment funds.
For Members:
The beneficiary forms are based on the plan in which the member is enrolled:
For Employers:
Find answers to common questions about troubleshooting, including online account access and use of access credentials
Members go to www.mmbb.org/members to log into their MMBB accounts. Members will need their Username and Password to log into their accounts.
To retrieve your username or change your password, please use the self-service link “Forgot password?” on the MMBB Member Portal login page and follow the prompts/instructions. Once the password reset is successfully completed, a confirmation email will be delivered to the email address you have associated with your Member Portal user account. The email will include your Member Portal username.
Currently your Quarterly statement can be found online. Once logged into your account, click the More… tab to get your Online Statements.
Find answers to common questions about investment advice and guidance, including how a financial planner may be able to help you
MMBB offers members a variety of different investment options. These choices allow members to select either a single investment option or a mix of options to meet each member’s personal investment goals and risk tolerance level.
Log into the MMBB Member Portal.
See and click the appropriate link on the Member Portal homepage.
1. The investment mix of your current balance, which is the money that's already in the Plan.
2. And, the investment mix you choose for the future contributions you make to the Plan.
There are no charges to make changes to your allocation or to transfer between investment funds internally.
As an MMBB member, you are eligible for personal financial consultations with our staff of experienced financial planner professionals. Our financial planners are not driven by commissions and do not sell products— we provide this service to you as a benefit of membership.
MMBB’s Financial Planning Professionals can consult with you individually to achieve your personal financial goals, like investment planning, retirement planning, insurance and income tax planning. To learn more about our financial planning services and to see if it’s right for you, contact us at [email protected] or 1.800.986.6222.
Find answers to frequently asked questions about settling accounts at retirement
Call MMBB at (800) 986-6222 at least 60-90 days in advance of when you want to start receiving your retirement income.
If you are no longer working at your employer, you can initiate the beginning of retirement income at any age.
You have several options with regard to a distribution upon Retirement, Death, Disability, or Employment Termination.
Withdrawals and distributions after separation from service are generally included in your taxable income in the year of distribution. After the close of the tax year in which you take a distribution, you will receive a 1099R tax form. It will include information on your distribution.
Exceptions to this rule may apply if:
The clergy housing allowance is the most important tax benefit available to ministers who own or rent their homes. MMBB recognizes most distributions as housing allowance eligible.
Distributions not eligible for the housing allowance designation include:
These benefits would be payable to your designated beneficiaries and thus it is important that your beneficiary information is up to date.
When you retire, you can withdraw up to 50% of your Comprehensive Plan investment account after annuitizing. The Retirement Only and Member Contribution Plans are eligible for 100% lump sum. If you choose to have the account distributed to you directly, certain IRS tax regulations apply. To review your lump sum options and tax consequences, contact MMBB at (800) 986-6222. You may defer paying taxes at the time you take a withdrawal by directly rolling over your eligible withdrawal to another qualified plan or IRA.
Yes, there are options to roll over the funds., To review your lump sum options and tax consequences, contact MMBB at (800) 986-6222.
Find answers to common questions about loans, including taking loans from current retirement plans and borrowing limits
Generally, yes you can take a loan from your retirement plans, if you have balance in one of our plans. You can check the current loan amount available online or by calling MMBB’s partner, Fidelity and speaking with a representative. Call the MMBB Member Service line at 1-800-682-6222 and choose option 1 to speak to a Fidelity rep. for a current loan amount.
For Members who are in the Comprehensive Plan and the Retirement Only Plan, you can borrow the lesser of
for Members who are in the Member Contribution Plan, you can borrow the lesser of
Yes, you can apply online by logging into your account through the MMBB Member Portal.
Loan applications are approved upon receipt and funds are removed from the account. Fidelity, MMBB’s partner, processes the loan and issues a check to the member within 3-5 business days from the approval date. Repayment invoice processing will begin approximately 60 days after the loan is processed. Loan repayments are invested in accordance with your most recent investment elections for future contributions. Loan invoices are generated on the 15th of each month.
No, the loan is not subject to taxes as long as you do not default on the repayment of the loan. Loans will not cause any tax consequences if they are paid when due. However, if you “default” on a loan or terminate employment and do not repay the loan in its entirety, it will be considered a taxable distribution.
Only one loan may be outstanding on each account. However, the maximum number of outstanding loans is two for members with balances in all three eligible accounts – Comprehensive Plan, Retirement Only and Member Contribution Plan. A member or inactive member may not borrow more than once under any plan during a 12-month period.
Find answer to common questions about beneficiaries, including who can be one, and learn about the forms you need to update beneficiaries
To review your current beneficiary designations, please contact MMBB at (800)986-6222.
It depends on your retirement plan. If a member is married, yes the spouse is automatically named as the primary beneficiary for the Comprehensive Plan. The spouse is not automatically primary beneficiary for Retirement Only and Member Contribution Plans, and thus a member would have to name the spouse as primary beneficiary. To review your current beneficiary designations, please contact MMBB at (800) 986-6222.
To update your current beneficiary designations, please contact MMBB at (800) 986-6222 for the necessary forms.
If you are married, your spouse is automatically named as the primary beneficiary for the Comprehensive Plan. He or she will supersede any beneficiaries designated on the Designation of Beneficiary form. Therefore, enter your spouse and spousal information in the section reserved for the primary beneficiary designation. The spouse is not automatically primary beneficiary for Retirement Only and Member Contribution Plans, and so you would have to name the spouse as primary beneficiary.
You can choose anyone to be your beneficiary and you can change your beneficiary at any time by submitting a completed Designation of Beneficiary form. If you are married, plan provisions require your spouse to consent to your designated beneficiary(ies) by signing the Designation of Beneficiaries form in the applicable section. Make sure to sign the appropriate Designation of Beneficiaries form for your situation.
The primary beneficiary is the person or entity who has the first claim to inherit your assets after your death. The only way a contingent beneficiary inherits anything from your account is if the primary beneficiary or beneficiaries have predeceased you or otherwise can't be found. If no spouse or beneficiaries survive you, payment will be made to your estate. By completing a new beneficiary form, you will be revoking any previous beneficiary designations for your account. It is important to keep beneficiary designations up to date. If you wish to make changes, please request a new form.
Yes, a member may designate a trust as beneficiary under the various MMBBB Plans. If the trust is irrevocable upon your death a Tax Identification Number (TIN) is required on the W-9 form. If the trust is revocable upon your death, and your spouse is a trustee with the power to revoke the trust, their Social Security Number can be submitted on the W-9.
As far as naming a child, MMBB and the guardian determine the method of payment that would be most beneficial to the child until age 21. Then the child determines how they are to receive payments. The guardian can request a complete settlement at any time prior to the child turning age 21.
For the necessary forms to update your current beneficiary designation, please contact MMBB at (800) 986-6222 to review the appropriate form to complete based on the plan you have. You can also find the Designation of Beneficiary forms on this website at www.mmbb.org/forms.
Find answer to common questions about taxes, penalties, etc.
Withdrawals and distributions after separation from service are generally included in your taxable income in the distribution year. After the close of the tax year in which you take a distribution, you will receive a 1099R tax form. It will include information about your distribution.
Exceptions to this rule may apply if:
Annuity payments, similar to other distributions, are generally included in your taxable income in the year of distribution. MMBB recognizes most distributions as housing allowance eligible.
MMBB can withhold federal income taxes if requested by members. State taxes may also be withheld, depending on the state in which the member resides. Some states have mandatory withholding on distributions while other states prohibit the taxation. State tax may be waived for all ordained members even if they reside in a state where withholding is mandatory.
The clergy housing allowance is the most important tax benefit available to ministers who own or rent their homes. MMBB recognizes most distributions as housing allowance eligible.
Find answer to common questions about rollovers into MMBB
All rollovers are deposited into the Member Contribution Plan.
Rolling your money into the MMBB plan is a great way to maintain control over your retirement savings. If you have money in an eligible retirement plan, or certain Individual Retirement Accounts (IRAs), you can arrange to roll that money into a plan.
Rollover contributions into the Member Contribution Plan are permitted at any time from active, inactive and retired members. You may roll over any amount up to the full taxable portion of your eligible rollover distribution. You may not roll over any shares of stock.
Rollovers must comply with IRS regulations, and not all types of distributions are eligible for rollover. Your rollover check and Rollover Form must be submitted together.
MMBB must approve rollovers. If your request is approved, a rollover confirmation will be mailed to your address on file within two business days. If your rollover is not accepted due to incomplete information, you will be notified. To review your rollover options and to obtain necessary forms, contact MMBB at (800) 986-6222.
The following are considered eligible retirement plans:
Find answer to common questions regarding housing allowance eligibility
A church can declare a portion of a minister’s rental value of the parsonage as taxable income on the minister’s IRS Form W-2 if the member wants to increase his or her contributions to a retirement plan such as the Member Contribution Plan.
MMBB Financial Services reports the housing allowance information on the 1099 form. The housing allowance appears differently on the 1099 for those who receive their annuities and those who have a balance in their account. For more information about the 1099 form, contact a Senior Benefits Specialist.
Distributions not eligible for the housing allowance designation include:
Clergy temporarily in a nursing home would use his or her primary home for the housing allowance. In this case, the nursing home expenses could not be used toward the housing allowance.
If the member is a permanent resident of the nursing home, the housing allowance applies to the nursing home because the nursing home is the member’s primary residence. Clergy as residents of retirement centers can consider that portion of their monthly payment that represents housing costs to determine their housing allowance exclusion. The charges for food and medical care are not considered housing expenses. They would have to obtain from the administrator of the residence the portion of their monthly payments that represents housing costs (rental, utilities, etc.). Any housing expenses for the home where the member’s spouse resides would not apply to the housing allowance.
No. Clergy receiving a pension from a non-church institution cannot have the institution designate their pension as housing allowance even if contributions to that pension account came as result of the clergy’s employment by a church. The IRS has provided private letter rulings to denominations regarding the designation of annuity payments and other distributions from the denominations’ pension plans. There is no private letter ruling from the IRS that allows non-church institution to designate its pension as housing allowance
The annuity payments to the surviving spouse for the remaining months will not be designated as housing allowance. The expenses and rental value criteria would only apply for the months during which the clergy annuitant was alive.
Find about required minimum distributions
Required minimum distributions, or RMDs, are mandatory, minimum yearly withdrawals that generally must be taken starting in the year the member turns 72. While there is a minimum amount you are required to withdraw in order to avoid severe penalties, you can always take more than the RMD amount. Generally, RMDs are required from any retirement account in which contributions or earnings were tax deferred. In addition to the accounts offered by MMBB other accounts with RMD requirements include IRAs and 401(k) plans.
The required minimum distribution is determined by dividing the member’s retirement plan balance as of December 31 for the previous year (minus any pre-1987 balance if younger than age 75) by the member’s life expectancy factor. If the member has more than one account with MMBB, a separate calculation will occur on each account. For example, the member has a balance in the Comprehensive Plan and the Member Contribution Plan. RMD calculations will occur on each account. The member will receive one check for each plan a member has with MMBB and IRS Form 1099-R. The factor used can be found in The Uniform Lifetime Table as published in the Department of Treasury Federal Register 26 CFR Parts 1, 52, and 602. To review your RMD requirements and amount, contact MMBB at (800) 986-6222.
Members must receive their first RMD by April 1 of the year after they reach age 72. For each subsequent year, the RMD deadline is December 31. If members do not elect to defer until the following April 1 after they reach 72, we will pay out the RMD in the year a member turns 72. All subsequent RMDs will be paid no later than December 31.
A member can delay the start of their RMD if they meet the still working definition. The member will be treated as “still working” if they are employed either:
Find about retirement accumulations in divorce
If the member’s MMBB administered account(s) are to be part of the divorce settlement, then MMBB must receive a certified court approved Qualified Domestic Relations Order (QDRO). Even if the member’s MMBB administered account(s) are not affected, MMBB must receive a copy of the divorce decree to show the divorce is final and a copy of the property settlement/settlement agreement showing that there was no claim to their account(s). [Note: A divorce property settlement document or divorce decree document could be eligible as a QDRO if it includes the criteria required to “qualify” as a QDRO.
MMBB will send separate letters to the member and his or her spouse with a sample QDRO that should be given to the attorneys. If the attorneys have the sample QDRO, there is a greater chance that the divorce decree involving property settlement will qualify as a QDRO. [Note: MMBB will freeze member’s account pending receipt of QDRO.]
If the QDRO meets the federal requirements and specifies an account division, MMBB will do the calculation as to how much of the member’s account(s) will be affected to create a QDRO-assigned account on behalf of the ex-spouse.
The member’s spouse remains the member’s primary beneficiary of his or her Comprehensive Plan account. Signature of the member’s spouse is required on any new beneficiary form until the divorce is finalized. Once the divorce is finalized, the member needs to submit to MMBB updated beneficiary forms.
Yes. The sample QDRO document that MMBB sends to the member, ex-spouse and attorneys is just that, a sample. Thus, a court order that stipulates a more restrictive domestic relations order can be accepted by MMBB and processed accordingly.
Find answer to common questions regarding remittances and premium payments
There are several ways to pay the monthly premium: Pay online; pay by phone or by mail. Your invoice lists the premium for each employee and each plan in which the employee participates. Please review your invoice carefully. If you have any questions about your invoice, email [email protected]. Be sure to include your employer account number from the invoice.
To pay online, visit mmbb.org and click the Log In button. Have your five-digit account number available. [Note: There are step-by-step videos that will help you get started making online payments quickly and easily. View the tutorial video Online Payments: How To Pay My Invoice ]
To pay by phone, call 800.986.6222 and have your five-digit account number available along with the church’s bank information – bank account number and routing number.
When paying the monthly MMBB invoice by mail:
MMBB Financial Services
P.O. Box 121142, Dept. 1142
Dallas, TX 75312-1142
Only premium payments should be mailed to this address. Do not include correspondence or application forms.
Payments are due on the 26th day of the month following the month the invoice is intended to cover. Remit your premium payments and retirement plan contributions as soon as possible. To comply with IRS requirements, MMBB must receive your payment no later than the 15th day of the month following the month covered by the invoice.
If MMBB does not receive your Comprehensive Plan premium payment by the end of the third month following the month for which the premium was due, we terminate the member’s coverage for death and disability benefits. For example, if the premium payment for January is not paid by the end of March, we terminate the member’s coverage on April 1 and inactivate his or her membership. An inactive member has neither death benefits nor disability coverage.
To end a premium payment for a member, the employer would contact MMBB at [email protected] and let us know the termination date along with the employee’s information. Be sure to include your employer account number from the invoice.
Find answer to common questions regarding pastor compensation
It is essential to calculate benefits accurately. A member’s reported compensation is used to determine monthly premiums and annual retirement plan contribution limits. Compensation includes:
Your pastoral leaders deserve the full benefits for which they are eligible. It is helpful to provide a full and accurate report of their compensation. Retirement savings contributions and death and disability benefits are based on reported compensation. Underreporting income, or failing to report increases in compensation, will result in lower benefits to the member and his or her family.
As administrator of the MMBB benefits program, you are responsible for reporting changes to compensation, Member Contribution Plan changes and employment status changes. Report any compensation changes to MMBB as soon as they are approved. They affect the member’s death and disability benefits, as well as retirement plan contribution premiums and limits.
Submit a Compensation Change Request (Form A-18). Please read the form carefully before submitting it. Please note only an authorized person of the church can fill out this form. Incomplete forms delay the processing of your request.
Email the completed form to [email protected] or mail it to: MMBB Financial Services 475 Riverside Drive, Suite 1700 New York, NY 10115-0049 Changes received by the 15th of the month generally appear on the following month’s invoice.
If the employee is hired and MMBB has received the premium payment within the first five days of the same month, the employee will be covered in the Comprehensive Plan (including disability and death benefits) for the entire month. If the employee is hired after that point, the employee will appear on the next month’s invoice and coverage will begin on the first of the next month. For example, an employee who is hired April 2 and whose premium MMBB has received, will be covered for the entire month of April. An employee hired April 21 whose premium has been paid, will be covered starting on May 1.
The Membership Application for the Member Contribution Plan must be accompanied by a signed Salary Reduction Agreement (Form A-13a). Any amounts withheld before this agreement is signed will not be accepted. Submit this form during the month before the pay period in which the employee would like to have the money withheld. Example: Your payroll period is every two weeks and the member wants member contributions to start during the February 5-19 pay period. In order for the withholding to be treated as a pre-tax member contribution, MMBB must receive a properly filled out and signed Salary Reduction Agreement by the end of the previous month.
Many regions use a comparison analysis to help churches determine fair compensation for their pastoral leaders. Upon request, MMBB will produce an analysis comparing churches of similar size in your region. Please provide the names of the churches and their pastors grouped together to one of three categories: (1) church membership; (2) average attendance in worship, or (3) annual church budget. Link to MMBB Comparison Analysis on Clergy Compensation page.
Compensation refers to cash salary and housing allowance or parsonage rental value plus utilities. If Social Security/Medicare tax offset is included for determining the MMBB Comprehensive Plan premium, that figure is included. Learn more at link to Clergy Compensation page
Please direct your inquires about clergy compensation to MMBB at (800) 986-6222 or email us at [email protected].
Thank you for joining the MMBB mailing list. You will begin to receive information soon.
Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
MMBB Financial Services is pleased to unveil our new website experience.
Watch a guided tutorial of our enhanced site to introduce you to important new features designed to help you live your life with financial confidence.
You will be linking to another website not owned or operated by MMBB. MMBB is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by MMBB of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from MMBB.
If you “Proceed”, the link will open in a new window.
Back to Top
