There are two ways in which pretax contributions can be made to your retirement account. The first option is a salary-reduced contribution. You may sign a Retirement Contribution Agreement with your employer, which allows your employer to withhold a portion of your salary and send that contribution to GuideStone. You must complete the Retirement Contribution Agreement and return it to your employer. The Retirement Contribution Agreement does not need to be returned to GuideStone; simply retain copies for your records.
Secondly, the employer may make contributions on behalf of an employee as a benefit of employment. These contributions are considered tax-sheltered as well. Either way, contributions must be sent in on an employer check, including ongoing employee tax-paid contributions.
Additionally, there are two ways to make after-tax contributions: employee tax-paid contributions and Roth elective deferrals. To send employee tax-paid contributions, the employer may write a check for the amount of after-tax contributions, including a letter of instruction detailing contribution source, allocation and participant information. Additionally, you may add a new tax-paid amount to your employer’s monthly statement and request that they begin reducing a regular amount from your after-tax salary and send it to GuideStone.
Roth elective deferrals can be initiated through a Retirement Contribution Agreement with your employer, if their plan allows. The amount will be withheld from your paychecks and paid to GuideStone by your employer, but will be included in your gross income when your paychecks are received.
Please remember that to participate in a Church Retirement Plan, the employee must be employed at the church and receiving taxable compensation from the church.