Church Plans under ERISA and the Internal Revenue Code

Summary

This practice note describes the special status afforded to benefit plans sponsored by churches and certain church-related organizations under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (the Code). Such church plans are exempt from ERISA Titles I and IV and certain qualified retirement plan rules under the Code unless they make an affirmative election to be covered. In addition, several other Code provisions dealing with qualified and nonqualified deferred compensation plans apply special rules for certain church plans. Practitioners advising plan sponsors regarding church plan status eligibility, church plan elections, and special compliance considerations for church plans need to be familiar with these issues.