Questions? Answered.

A 403(b)(9) is a tax-advantaged retirement plan available exclusively to churches and qualified church-controlled organizations. It works like a standard employer-sponsored retirement plan — employees contribute pre-tax dollars, the money grows tax-deferred, and distributions are taxed as income in retirement. The key difference is that it's built around the unique needs of church employees, including housing allowance designations for ordained ministers.

Any church or qualified church-controlled organization can sponsor a 403(b)(9) plan. You don't need to be a specific denomination or size. Independent churches, non-denominational congregations, and denominational churches can all qualify. Participants include any employee of the church — pastors, administrative staff, worship leaders, custodians, and more.

A standard 403(b) is available to employees of public schools and certain nonprofits, and it's subject to ERISA regulations — meaning annual filings, audits, and complex compliance rules. A 403(b)(9) is specifically for churches and is exempt from ERISA. That means less paperwork, lower administrative burden, and more flexibility in plan design, while still offering the same core tax advantages.

The housing allowance (also called a parsonage allowance) lets ordained, licensed, or commissioned ministers designate a portion of their retirement distributions as housing expenses — which are then excluded from federal income tax. This is one of the most valuable tax benefits available to ministers, and it applies to distributions from a 403(b)(9) plan in retirement. Shorebird tracks housing allowance designations so they're ready when your ministers need them.

For 2026, employees can contribute up to $23,500 in pre-tax deferrals. Participants age 50 and older can contribute an additional $7,500 in catch-up contributions. Churches can also make employer contributions on top of that. The combined employee + employer limit is $70,000 per year. Shorebird tracks these limits automatically and flags when a participant is approaching them.

Absolutely. There's no minimum number of participants. Shorebird was built with small and mid-size churches in mind — the ones that have historically been priced out of quality retirement plans. Whether you have 3 employees or 300, you can get started.

Most churches can go from signup to first contributions in about two weeks. You'll complete a short adoption agreement, we'll generate your plan document and set up custody accounts, and then your employees can enroll through the participant portal. We handle the heavy lifting — you just need to make a few decisions about how you'd like the plan to work.

There are a handful of choices your church makes when adopting the plan: things like whether you'll offer employer matching contributions, how you want fees split between the church and participants, eligibility requirements for new employees, and your vesting schedule. We guide you through each decision in plain language — no legal jargon, no guesswork.

That depends on your church's governance structure. Most churches require a board resolution or elder vote to adopt a retirement plan and authorize the related budget commitment. We can help you understand what your board will need to approve so you're prepared for that conversation.

We handle the transition. Participants can roll over their existing balances into the new Shorebird plan with no tax consequences. We'll coordinate with your current provider on the transfer and keep your team informed throughout. The timeline varies depending on your current provider, but we'll work to make it as smooth as possible.

Shorebird is designed to work with your existing payroll workflow. Contribution data flows into the platform each pay period — whether that's through a direct integration like QuickBooks Online or by uploading contribution details through the admin portal. Either way, participant accounts are funded accurately and on time.

No. Plan document preparation, custody setup, onboarding support — all included at no additional cost. You only pay your monthly plan fees once your plan is live and participants are enrolled. See our pricing FAQ for the full breakdown.

When a new employee is added to payroll, the church admin approves them in the Shorebird portal and the employee receives an enrollment email. From there, they create an account, choose their contribution amount, select their investments, and designate a beneficiary — all online, in about 10 minutes.

Participants choose from a curated lineup of low-cost index funds covering U.S. and international stocks, bonds, and inflation-protected securities. We also offer target-date model portfolios — participants pick a target retirement year and the allocation adjusts automatically over time. Every fund in the lineup is selected for low expenses and broad diversification.

Yes — any time. Participants can log into the Shorebird portal and adjust their contribution amount or investment selections whenever they'd like. Changes take effect with the next payroll cycle. There's no limit on how often changes can be made.

Yes. Participants can roll over funds from a previous employer's 401(k), 403(b), or IRA into their Shorebird account. This consolidates their retirement savings in one place and — for ministers — can make more of their savings eligible for housing allowance treatment in retirement.

Standard IRS rules apply. Participants can begin penalty-free withdrawals at age 59½, and must begin required minimum distributions at age 73. Hardship withdrawals and in-service distributions may also be available depending on how your church has set up the plan. Terminated employees can take a distribution or roll their balance to another qualified plan at any time.

Their account stays with them. They can leave the balance in the plan, roll it over to a new employer's plan or an IRA, or take a distribution (subject to taxes and potential penalties if under 59½). If the church has a vesting schedule for employer contributions, only the vested portion belongs to the participant.

Shorebird handles plan administration, compliance monitoring, investment management, participant recordkeeping, and the technology platform. Your church handles payroll and submitting contribution data each pay period — either through a direct integration or the admin portal — along with approving new participants and making plan-level decisions like contribution formulas. Think of it as: you decide the "what" and we take care of the "how."

One of the biggest advantages of a 403(b)(9) is that it's exempt from ERISA — meaning no Form 5500 filing, no annual audits, and no Department of Labor oversight. There are still some IRS reporting obligations, but they're minimal compared to other employer plans, and Shorebird helps you stay on top of them.

Yes. Your church can set up a matching contribution (e.g., match 50% of the first 6% an employee contributes) or a flat employer contribution for all eligible employees. The formula is entirely up to you and is established in your adoption agreement.

Shorebird monitors contribution limits, tracks eligibility, manages vesting schedules, and flags anything that needs attention — like a participant approaching the annual deferral limit or a required minimum distribution coming due. If regulatory changes affect your plan, we let you know what's changed and what action (if any) you need to take.

Yes. Shorebird uses bank-level encryption for data in transit and at rest. Participant information is stored securely, access is role-based (church admins only see their own plan data), and we never sell or share personal data with third parties. Your church's financial information stays exactly where it should — with you.

There are no long-term contracts. If your church decides to terminate the plan or move to another provider, we'll help you through the process. There is a one-time plan termination fee of $1,000 to cover the administrative work involved, but no penalties or lock-in fees. Participant balances are distributed or rolled over according to their instructions.