HERE IS HOW IT WORKS:
1. The church makes a decision that they would like to fund a retirement plan for a minister. 2. An Associate Ministers Retirement Plan is established for the minister at The Joy To The World Foundation that will qualify for the Minister’s Housing Allowance and may provide regular or guaranteed tax-free payouts at retirement for the minister, regardless of the age of retirement, under the provisions of the Minister's Housing Allowance.
3. The church, minister and Joy to the World Foundation enter into an Associate Ministers Retirement Funding Agreement that specifies how and when the funds will be paid out to the minister and spouse and what will happen to the principal after the minister and spouse pass away.
4. The church may fund the retirement plan with a lump sum payment if they have not provided for the minister in previous years or the plan may be funded with a series of payments determined annually by the church even though he or she is still a minister at the church.
5. When the minister retires, is disabled or is otherwise unable to work, the plan can provide for him and his spouse for the remainder of their lives to the extent of the plan.
6. Funds will be invested by the Foundation in safe low risk investments so that the funds will grow and will be there when the minister needs them.
7. There is a fee of 1% of any contributions made to the plan and a 1% annual (taken quarely) investment fee charged by the Foundation on invested funds. The investment growth of assets in the minister’s plan will be added to the principal.
If you are interested in finding out more about this program, please contact the Joy to the World Foundation office toll-free at 844-670-2875 to see how a plan might be customized to meet the needs of your church and minister.