Can Self-Employed Ministers in 403(b)s Be 5% Owners?

Q. Is a self-employed minister in a 403(b) always entitled to the extended requirement beginning date at age 70½? Are there situations in which he or she can ever be considered a 5% owner?

A. A self-employed minister is considered his/her own 501(c)(3) organization and as such there cannot be any ‘owners.’ For purposes of 403(b) employers — public educational institutions and tax-exempt under 501(c)(3) and churches — there will never be a situation in which you need to consider 5% owners.