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Tax-Deferred vs. Taxed Savings Accounts
Life Rewards is a Tax-Deferred Retirement Savings Program *Assumes a $6,000 annual contribution, tax rate of 15%, and a 6.75% interest rate. |
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Learn MoreThank you for asking us to tell you more about Life Rewards Ministers Retirement Plan. Life Rewards is a 403(b) retirement plan available to Assemblies of God ministers and ministry staff. A 403(b) retirement plan allows you to save a portion of every paycheck for retirement through payroll deduction. Plus, your employer can contribute on your behalf. You pay no taxes on contribution or earnings until the plan starts paying you, usually when you’ve retired. And if you retire as a credentialed minister, you can designate a portion of your plan distributions as a housing allowance which, under current tax law, means the money is tax-free. Since Life Rewards is a 403(b) plan, you can increase your savings more quickly. Currently, individuals under age 50 can invest up to $4,000 a year with an IRA, but far more with Life Rewards – as much as $15,500 a year. Life Rewards is an employer-sponsored plan, which means that your employer has to simply adopt the plan before you can enroll. Learn more about Church Sponsorship.
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