Retiring in 403b9 Retirement Plan FAQ

FAQs: Retiring in the ACC Retirement Plan 71280, A 403b Qualified Church Plan

Purpose: The objective of this publication is to provide the considerations and steps necessary to retire in the ACC Retirement Plan.

Am I eligible for retirement in the plan? If you are working 30 hours per week or less and are within the age requirements, then you are eligible to retire in the plan and receive distributions.

  Per the plan document, the normal retirement date is the participant’s 65th birthday. If you are 65 or older, you may retire in the plan.

             Alert the plan administrator at 847-781-7800 and s/he will retire you in the plan.

  You are eligible to request early retirement between the age of 59.5 years old and before your 65th birthday.

              If you would like to request early retirement, let the plan administrator know.

How do I initiate distributions from the plan? To initiate distributions from the plan, contact Fidelity at 1-800-343-0860 and the friendly folks there will walk you through the entire process!
*Make sure to let the Fidelity representative know, at the beginning of every year, how much of your annual distribution you would like to receive as minister housing allowance (Fidelity’s lingo for parsonage) so you are not charged income tax on that amount and your 1099 produces correctly!

How long will it take to receive my first distribution?  Make sure to plan ahead, as it will take some time to request and then receive your first distribution. Once you have completed the setup process, your distributions will come as arranged.

Will Fidelity keep my parsonage  (minister housing allowance) amount on record from year to year? No! It is your responsibility to call Fidelity and let them know how much of your distribution will be Minister Housing Allowance at the start of every year. If you do not tell Fidelity, they do not know, and this will lead to your 1099 being incorrect at year end. It is difficult to correct, so prevention is the best solution!

How will I receive my 1099 tax documentation from Fidelity? Your tax documentation will always be available at Fidelity’s NetBenefits participant online platform. In NetBenefits, you can specify that you would like to receive it in the mail. Can’t figure out how? Call the Fidelity team at 1-800-343-0860 and they will walk you through it.

Can I take advantage of the parsonage (minister housing allowance) benefit when receiving my retirement plan distributions? Yes! One of the great benefits of participating in the ACC Retirement plan is that you can receive parsonage (minister housing allowance) in retirement. As a Qualified Church Plan, we are in a unique position to allow you to take advantage of this wonderful clergy benefit.

What do I have to do to be eligible for parsonage (minister housing allowance) in the Retirement Plan? Once you are retired in the ACC plan, you can call Fidelity at 1-800-343-0860 to get your distributions started. There is form they will send that has to come back to the office for sign off on and submission. You will also want to set up direct deposit and there is a form for that as well. When you set up your distributions, you can do it at whatever interval you wish, just make sure to let Fidelity know what amount you want to take as housing allowance. You can also have them withhold taxes on the part that is not housing allowance if you wish. 

You will need to tell Fidelity the amount of your requested parsonage or housing allowance distributions each year, so your tax documentations are correct. 

This sample form may be of assistance while working with your financial advisor or CPA in determining the amount of housing allowance for which you are eligible. The ACC makes no determination of your eligible amount. Please consult your tax or financial advisor.

The following motion covers housing allowance for all eligible plan participants:

RESOLVED, that effective January 1, 2024, 100% of each retired cantor’s benefits paid by, from and under the [403(b) plan] and [the supplemental plan] shall constitute a housing or rental allowance paid as part of the retired cantor’s compensation for past services, but only to the extent that the benefits are used to rent or provide a home and to the extent the allowances do not exceed the fair rental value of the home as provided in the Code.

I am thinking of Retiring but would like some guidance on the different things to consider, apart from the Retirement Plan. Who can I speak with? We recommend you speak with the ACC's Director of Member Services, Cantor Erin Frankel

American Conference of Cantors Main Office
Phone: 1-847-781-7800
Fax: 1-847-781-7801
Address: 1375 Remington Road Suite M, Chicago, IL 60645

Senior Engagement Group
We invite you to check out the SEG page for resources and information. 

Fidelity Investments
General phone number: 1-800-343-2476
NetBenefits: https://nb.fidelity.com/public/nb/default/home