Reliant offers matching contributions up to 5% of employee eligible earnings. “Ineligible” earnings such as a ministry expense bonus, taxable reimbursements, and wages earned prior to the 403(b)(9) plan entry date are not eligible for the 5% employer match.
Do I get to take the match with me if I leave employment with Reliant?
Yes, participants in the 403(b)(9) Plan are immediately 100% "vested," which means the employer match contributions are fully transferable (into another retirement account with your new employer or an IRA), should you exit employment with Reliant.
How will my 403(b)(9) contributions effect my paycheck and my support goal?
Employer match contributions are charged directly to the MTD account that you are responsible for with Reliant. You will have to raise the extra money for the employer match, and it will increase your support goal. Employee contributions come out of your paycheck each month.
How do I update my 403(b)(9) match in my support goal on Toolbox?
When updating your support goal on Toolbox, enter the amount you would like to contribute from your paycheck into the goal on Toolbox in the "How much are you contributing to Retirement?" section. The goal will automatically match the amount entered up to 5% of your accepted salary as an employer match amount. So at most, the match will be 5%, but it can be less, depending on what amount you add in the goal for your contribution amount. You can always choose to withhold more than 5% from your paycheck, but we will only match up to 5% out of the account for which you are responsible. This matching amount will be added to your support goal. The employee contribution is not included in the support goal amount, it is deducted from the paycheck. Changing the 403(b)(9) amount increases/decreases the support goal so that the account for which you are responsible will be ready to match the amount.
Reminder: Changing the contribution amount on the support goal does not actually change how much Reliant withholds from your paycheck. Since the 403(b)(9) is managed by Principal, go to the Principal site to update any changes to your 403(b)(9) contributions. Principal then sends a report each month to Reliant to note any changes for your next paycheck. Remember that Reliant auto-enrolls you at $50 a month to start, after which you can make changes to that amount. (See Changes to Contributions).
What is the advantage of a 403(b)(9) vs. personal saving in an IRA?
The advantage of a 403(b)(9) plan versus personal investing or saving is the employer match does not get taxed (until you retire and withdraw it). So, the match enables you to save extra money (on top of any money you save through other methods) towards your retirement.
It’s like opting to receive a special bonus every month that goes directly into your retirement savings account and that the government doesn’t tax you on (until retirement).
Plus, 403(b)(9) Plans can often negotiate lower fees for the investments offered in their plans vs. the employees buying the same investments personally in their IRAs. 403(b)(9) Plans have the buying power of a larger group, so they're able to negotiate lower fees for the investments because they're buying in "bulk." It's kind of like shopping at a "big box" store.
