A church plan is a retirement or benefit plan set up and maintained by a church or an association of churches for their employees or their beneficiaries. These plans are recognized as tax-exempt under the Internal Revenue Code. However, a church plan does not include plans primarily benefiting employees engaged in unrelated business activities or those that do not cover a significant majority of eligible individuals.
Church plans are primarily used in the context of employee benefits and retirement planning within religious organizations. They fall under the Employee Retirement Income Security Act (ERISA) but have specific exemptions due to their religious nature. Legal professionals may encounter church plans in various areas, including employment law and tax law. Users can manage certain aspects of church plans using legal forms designed for retirement plans.
Here are a couple of examples of abatement:
Example 1: A local church establishes a retirement plan for its staff, ensuring that it meets the criteria of a church plan as defined by federal law.
Example 2: A denomination creates a health benefits plan for its ministers and employees, which qualifies as a church plan under the relevant tax codes.
The primary statute governing church plans is the Employee Retirement Income Security Act (ERISA), specifically under 29 USCS § 1002. This law outlines the definition and requirements for church plans, ensuring they meet specific criteria for tax exemption.
| State | Key Differences |
|---|---|
| California | California has specific regulations regarding the reporting and disclosure of church plans. |
| Texas | Texas law provides additional protections for employees of church plans compared to federal law. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
If you are involved with a church plan, ensure that it meets the necessary criteria for tax exemption and compliance with ERISA. Consider using US Legal Forms to access templates for establishing or reviewing church plans. If you face complex issues, consulting a legal professional is advisable.
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A church plan is a retirement or benefit plan established by a church for its employees or their beneficiaries.