I have a 414(e) Church with a 403(B)(9) Retirement Income Account Plan. Can this plan be funded by mutual funds within a group custodial arrangement? Does it have to be funded with annuities?

The nice thing about a 403(B)(9) retirement income account is that it can be invested in any kind of investments the church wants to use. Mutual funds are usually used, but a church RIA plan could, for example, also have a brokerage window or GIC investment option associated with it. Even common stocks could be purchased, although prudence would of course be an issue. If you use a mutual fund group custodial account arrangement, there will be some requirements in it that don't apply to a (B)(9). For example, all contributions, both employer and employee, are subject to distibution restrictions in a (B)(7)--that's not true for a (B)(9). Hope this helps.

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Danny Miller
Conner & Winters
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