Tag Archives retirement plan

Are You Eligible To Make Extra 403(b) Contributions?

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People over 50 are eligible to make extra contributions to their 403(b) plans. However, some plans even let younger people make extra contributions. Here is everything you need to know regarding eligibility, limits, etc. for making extra contributions to your 403(b).

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Can You Still Receive Social Security Benefits Even After Opting Out?

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Yes.

There you have it, shortest blog post ever.

But in all seriousness, this is an important matter that can make a huge difference during your retirement. If you didn’t take saving for retirement seriously during your early years, even just receiving a little help from the Social Security Administration could make a big impact your monthly income in retirement.

Sounds great. So how does it work? Well, there are two ways:

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What Are The Different Parts Of A Minister’s Compensation Package?

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The Apostle Paul told Timothy in 1 Timothy 5:17-18 that “The elders who direct the affairs of the church well are worthy of double honor, especially those whose work is preaching and teaching. For Scripture says, “Do not muzzle an ox while it is treading out the grain,” and “The worker deserves his wages.” (NIV) 

I agree. You are worth your wages. But what are your wages?

We commonly think of wages as simply your salary, what you get paid to work. However, compensation can be a whole lot more than just a salary. This is especially true for pastors because of the unique opportunities that you have access to. There are a number of different things that comprise compensation, but they can be broken into two basic categories: income and benefits.

Ministerial Income

Income is actual money that’s coming to you. It’s something tangible that you can put in your bank account.

Salary

A pastor’s salary isn’t much different than anyone else’s salary. It’s money that you get paid for doing a job. You have to pay taxes on the money and you get to do whatever you want with it. 

Social Security & Medicare Offset

Pastors are dual-status taxpayers for Social Security purposes and thus have to pay both the employee and employer portions of that tax. If you’re not familiar with that, follow the link in the last sentence or none of this will make sense to you.

Some churches feel bad that pastors have to pay the employer portion of the Social Security and Medicare taxes and want to help them cover the cost. They calculate how much an employer would normally pay for the pastor, 7.65%, and pay that as additional salary. It is a nice gesture and definitely helpful to the pastor. Nevertheless, a Social Security and Medicare offset is simply additional taxable income in the eyes of the IRS. 

Housing Allowance

Another type of income unique to ministers is the housing allowance. This site has all kinds of articles related to the housing allowance and I even wrote a book on it

Basically, the housing allowance is income that is exempt from federal income taxation and can only be used for qualified housing expenses. It is also exempt from most state income taxes as well. Nevertheless, it is not exempt from Social Security & Medicare taxes.

Equity Allowance

The final type of pastoral income is specific to pastors who live in a parsonage. A parsonage is church-provided housing. As such, a pastor who lives in a parsonage does not have the opportunity to build home equity. When the ministry position is gone, the pastor has to start from scratch with housing.

This is the opposite experience for most Americans who purchase a home. As they pay down their mortgage and home values rise, their equity increases. Many people are able to pay off their mortgage by the time they retire so that they have lower housing expenses in retirement and a valuable asset that they can pull equity from if necessary. 

Pastors who live in a parsonage often find themselves at retirement homeless and equity-less. To make up for that, many churches pay their pastors an equity allowance to help build towards purchasing a home in retirement. If they pay it directly to the pastor’s retirement account, it receives tax benefits and the pastor cannot access it for other things until retirement. If it is given as a cash payment, it is treated as taxable income by the IRS.

Ministerial Benefits

While income is money that you get, benefits are more of services or products provided to you. They are not cash and will not grow your bank account, but they are still very important to your overall financial life. 

Health

One of the most valuable benefits that an employer can provide is health insurance. It is much more expensive to purchase health insurance as an individual than through a group policy. Also, premiums paid through an employer-sponsored health insurance plan are tax-free. Other health-related benefits that churches can provide to all of their employees are dental and vision insurance, health reimbursement arrangements, flexible spending accounts, or health savings accounts if in conjunction with a high-deductible health insurance plan.

Life Insurance

Another benefit that is helpful to both the pastor and the church (because they would want to care for the pastor’s family if anything happened) is life insurance. Up to $50,000 of group term life insurance can be provided tax-free and the premiums on any amounts above that are considered taxable income to the pastor (based on specific IRS calculations).

Disability Insurance

Most pastors are at greater risk of becoming disabled than dying. As such, disability insurance is a very valuable benefit. Like health insurance, it is also much more affordable when purchased as part of a group plan rather than as an individual.

Retirement Savings

A retirement savings account, usually a 403(b), is a benefit that has multiple advantages for pastors. Not only are pastors able to save for retirement pre-tax, but having a church-sponsored retirement plan makes it possible to claim a housing allowance in retirement and also entirely avoid paying Social Security and Medicare taxes on contributions.
 

Paid Leave

Even God took time to rest. As such, it is important for pastors to have access to paid leave (and a culture where they are encouraged to take it). It can be broken down in different ways, but paid leave can include sick days, holidays, vacation time, family leave, professional development, outside ministry, and sabbaticals. It is also important for the church to respect the pastor’s time off and pitch in to get work done while the pastor is away.

Parsonage

All of the other benefits (not income) listed here can be given to all church staff but a parsonage is only for ordained, licensed, or commissioned ministers. A parsonage is a church-owned home that a pastor gets to live in income tax-free.



Those are the different pieces that can be fit together to create a ministerial compensation package. Both pastors and their churches should understand these different components in order to create a tax-efficient compensation package that meets the pastor’s needs. Pastors, share this with whoever in your church makes salary decisions, whether it’s a board of directors, stewardship committee, an HR department, or whoever. Sit down and review it together to make sure your church is fulfilling 1 Timothy 5 to the best of its ability.

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One Thing You Probably Haven’t Discussed With Your Spouse—But Really Need To

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When you get married, two become one and you set out on the exciting journey of building a life together. You dream about the ministry you’ll have together, what your kids will look like, even the sports that they’ll play. However, there’s one thing that you probably haven’t taken the time to dream about together and it’s a whole lot more important than what sports your kids play.

How do you want to spend your golden years?

How Do You Want To Spend Your Golden Years?

What do you want to do in your 60’s, 70’s and 80’s? Do you long for the traditional retirement where you end your career to embark upon a life of leisure? What does leisure look like to you? Touring castles in Scotland or doing crafts with the grandkids?

It’s amazing how few people have taken the time to intentionally think through how they would like to spend the last third of their life. It can be hard to think of the future in that way, especially the younger you are, but it’s very important. Your plans for the future affect your behaviors today. In fact, your plans for the future should dictate today’s choices.

At What Age Do You Want To Retire?

When I’m talking to a prospective financial planning client, I always ask them at what age they want to retire because it’s a necessary data point for projections. Most people don’t know. A common answer is, “I don’t know, I haven’t really thought about it. Social Security is at 65, right? I’ll do that.” 

When you end your career is a big deal. Though as you can see, if you don’t take the time to think about it, you’ll end up letting an uninterested government agency arbitrarily determine your life plans. Ouch. When I put it that way, it doesn’t sound so good, does it? (And for most of you reading, your full Social Security retirement age is 67, not 65.

Do You Want To Retire?

Before you start stressing out over picking a retirement age, though, let me challenge you even further. Do you even want to retire in the traditional sense? Personally, I don’t plan on retiring. As I age, I may work less or do different things, but I think to completely stop working would be incredibly boring (I’ve already done that once when I became a mother). I’m told that’s a very Millennial and Baby Boomer attitude and Generation X still wants to retire. Either way is fine, there isn’t a right or wrong answer. 

I just want you to be intentional about it. Take some time to think outside the box and don’t just assume you’re going to stop working at age 65. There are so many things you can do in your later years. You can keep working full-time, cut back to part-time, stop working but actively volunteer, devote your time to your family, start an entirely new career or business, or even perfect your golf swing. 

Take some time to think these things through and envision your ideal retirement. If you could do anything, how would you spend your golden years? For many people, they are the most fruitful years of ministry, even if not formal, since they have so much wisdom and experience to offer the next generation.

Discuss It With Your Spouse

And now the hard part. Wait, you thought it was hard to create a vision for an unknown future? That’s just the beginning! Now you have to meld that into your spouse’s vision for the future. Hint: The sooner you start discussing this, the more time you have to work out your differences before you reach retirement age.

If you’ve been married for any significant amount of time, you’ll know that you and your spouse likely have different views on your retirement years. Even if you have the same goals, your ideas of how to accomplish them and prioritize different aspects of those goals probably differ. And that’s okay! 

Even though you’re a couple, you don’t have to do the exact same things! One of you can stay home and care for the grandchildren while the other leads short-term missions trips. One of you can keep working while the other one goes fishing, and there’s nothing wrong with that. What’s wrong is when you make assumptions instead of having conversations. Assumptions never bode well in marriage.

So, here’s your homework. Take some time to dream about how you want to spend your golden years. Share this article with your spouse so they can do the same. (If you’re single, you’re done with the homework once you have it figured out for yourself—lucky you!) Then, set a time to start discussing it. It will likely be an ongoing discussion, not something that’s addressed and solved in one sitting. Your vision will also likely continue to be shaped as you grow and your life circumstances change. That’s good, keep the discussion going. What’s not good is expecting the Social Security Administration to make major life decisions for you!

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How Pastors Can Avoid Paying Social Security Taxes Without Opting Out

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You didn’t opt out of Social Security because it doesn’t violate your conscience. But that doesn’t mean you like paying the tax. There are probably a lot of things you would rather do with that money. Do you have any other options?

Yes, you do. There is a legal way for you to avoid paying Social Security and Medicare taxes without opting out. And not only does it save you on taxes, but it’s really good for your future self as well. How do you do it? Make pre-tax contributions to your church’s retirement plan.

Pastors Pay Payroll Taxes Under SECA

Let me explain how that works. First, I have to remind you that pastors pay payroll taxes as if they were self-employed, under SECA. Confused? Read this article

Because you pay as if self-employed, your payroll taxes do not come out of your salary automatically as they do for other employees. You calculate your payroll taxes when you file your income tax return each spring. To do so, you take your taxable wages reported on your W-2 and add them to your housing allowance and pay taxes on the total. 

How Pre-Tax Retirement Contributions Work

Now we need to look at how retirement contributions work. When you make contributions to an employer’s retirement plan, your employer withholds the money before they pay you (and then sends it to your retirement account). The money never passes through your hands. 

If they are pre-tax (not Roth) contributions, then they never show up in your taxable income, either. That’s why they’re called pre-tax because they are taken out before your income is calculated for income tax purposes. You pay your income taxes on that money when you withdraw it from the account in retirement.

Most employees still have Social Security and Medicare taxes taken out of the money that they contribute to their employer’s retirement plan. But not pastors. Because your church can’t withhold those taxes for you, you pay them on your own. You calculate those taxes based on what is reported as taxable income to you. 

Lucky you, your retirement contributions don’t show up as taxable income. So you don’t have to pay Social Security and Medicare taxes on any of your pre-tax contributions to your church’s retirement account. And you don’t pay the taxes when you take the money out in retirement, either, you only have to pay income taxes. (Don’t worry, the IRS knows about this loophole and they are okay with it.) 

How It Works In Real Life

In case you weren’t able to follow all of that, let me give you an example (ignoring any housing allowance for simplicity’s sake). Let’s say you earn $60,000 and you make pre-tax contributions to your church’s 403(b) totaling $10,000. Since the contributions are pre-tax, your W-2 only shows $50,000 of income. If you hadn’t contributed to a retirement plan, you would have a taxable income of $60,000. 

What is the impact of that difference in taxable income? SECA taxes are 15.3%, though because of the way they are calculated they actually net out to 14.13%. You save $14.13 in taxes for every $100 pre-tax contribution you make. In our example, that’s a savings of $1,413! Pretty nice, right?

Claiming A Housing Allowance In Retirement

The icing on the cake is that you may even be able to avoid paying income taxes on the money when you take it out in retirement. Yes, you read that right. There is a way to get this money completely tax-free. How? Claim it as a housing allowance. Pastors are allowed to use money from a church retirement account as a housing allowance in retirement. This article elaborates on how that works. 

How To Start A Church Retirement Plan

Does this article make you sad that your church doesn’t sponsor a retirement plan for you to contribute to? Don’t be sad, just start one! It’s not as expensive and onerous as you think. I was genuinely surprised by how affordable it can be when I sat down to discuss it with Paul McWilliams, an advisor who helps churches set up retirement plans. Here is a post he wrote for Pastor’s Wallet on setting up a church retirement plan. 

If you’re thinking of starting a retirement plan, contact Paul or do a quick Google search to find some of the other companies that offer that service. I and my financial planning firm, Guide Financial Planning, do not set up retirement plans. At the moment, we only provide services for individuals. 

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The 4 Most Important Retirement Planning Decisions Ministers Need to Make

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This is a guest post by Chris Cagle, author of RetirementStewardship.com and The Minister’s Retirement book. I recently published a book review on his book and it got such a good reception that I asked him to write something specifically for you.

In my book, The Minister’s Retirement, I address many of the fundamental questions that pastors have about planning for, and living in, retirement. Wise planning involves making decisions consistent with biblical stewardship principles and implemented using wisdom and practical knowledge gained through experience. I call this “retirement stewardship.”

Some decisions are more critical than others, so in this article, I discuss the ones I consider of greatest importance based on the extent to which they can help a pastor to “retire with dignity.”

1.  The Social Security Decision

Although Christians have mixed opinions about it, Social Security is an expression of God’s common grace. It can be a blessing to Christians and non-Christians alike, especially those with limited savings and no other sources of retirement income.

For most U.S. workers, participation in Social Security is mandatory (which is objectionable to some). You can think of it as a type of public insurance that the federal government administers. It provides specific benefits to regular retirees and those who are survivors, disabled, or indigent. At its inception in the 1930s, Congress intended it to be a safety net for the neediest seniors and other vulnerable groups, not a “be all” retirement plan for the retired masses.

Social Security now provides about a third of the income for older retirees, and over half need it for more than 50% of their retirement income. That means that a large segment of the retired population would be in big financial trouble in retirement without it. Therefore, deciding whether to participate in the program and, eventually, when to start receiving benefits if they do, is one of the most critical ministers will make.

As defined by the IRS, a minister can decide not to participate in the Social Security program. If they opt-out and don’t contribute, they won’t be eligible for specific Social Security health and retirement benefits when they retire. That means they will have to find alternatives for retirement income, disability insurance, and paying for Medicare insurance.

Opting-out can’t be a purely financial decision (in order to avoid Self-Employment Contribution Act (SECA) taxes). According to the IRS, it has to be on religious grounds. In such cases, the church might consider giving the pastor an additional “allowance” for a portion of the 15.3 percent SECA tax. The pastor could use that to boost his retirement savings or to purchase a deferred income annuity or cash-value life insurance product to help fund his retirement, as he can’t directly apply it to the SECA tax.

Social Security is a good source of retirement income—it functions much like a lifetime inflation-adjusted income annuity. If they participate, some pastors’ benefits upon retirement will be their only source of income, making the opt-out decision of utmost importance.

2.  The Retirement Saving Decision

You’ve heard this drumbeat over and over: “Save as much as you can now for retirement because Americans are living longer than ever and your chances of running out of money are greater than ever.” Well, this isn’t just a catchy phrase; it’s a plea to everyone to save enough so that they can “retire with dignity.” The younger you are, the greater your opportunity to get this right. You only have one shot at it!

That’s why a pastor should start saving for retirement as early as possible, preferably in a 403(b)-retirement plan if one is available. Ideally, he would save at least enough to get the church’s matching contribution, which might be 3 to 6 percent of his salary. Saving early starts up the compounding engine of long-term growth, enabling savings to grow exponentially.

A distinct advantage of the 403(b) is that the church automatically makes the pastor’s deposit from his salary. Along with its matching contribution of some percentage (typically in addition to his salary), it directly deposits them into the pastor’s retirement account. Contribution amounts deposited are exempt from the self-employment tax and federal income tax, and the distributions are eligible for the housing allowance at retirement.

The Roth IRA is also a very popular retirement savings vehicle. Nonetheless, pastors should only use it only in certain situations as no part can be claimed as a housing allowance in retirement. A pastor without access to a church- or denomination-sponsored retirement plan or who is maximizing their 403(b) contributions and wants to use one to set aside more savings in a separate account is a good candidate for the Roth IRA.

3. The Investing Decision

Saving consistently over a long time carries more weight in future outcomes than whether you invest in fund X or Y or hold 60 percent in stocks or 70 percent. But that doesn’t mean that a pastor’s investment choices don’t matter. It’s possible to take too much risk or too little. He may have sufficiently diversified his investments between stocks, bonds, and alternatives relative to his stage of life and risk tolerance.

Some people’s strategy for investing is to “play the markets.” They buy and sell and try to time market ups and downs to make a profit.  Although there is the occasional success story, this has been proven to be a losing strategy in the vast majority of cases.

Here’s the reality: the stock market is us—all of us—we are the market. So, it’s actually a little foolish for the average person to believe that they, or even a competent paid adviser, can “beat the market.” Mr. Market is the sum of all the feelings, sentiments, beliefs, and behaviors of everyone who invests in the market—many who are much more knowledgeable and experienced than you or I. So, apart from the nominal economic growth that we all benefit from, you’ve got to beat somebody else at the same game and by more than what it costs you to come out ahead. And that someone could be a very knowledgeable and experienced Wall Street hedge fund manager running a multi-million-dollar portfolio.

My point is that it really doesn’t make sense to go toe-to-toe with the professionals on Wall Street, especially when we’re talking about the money that you will need to live on in retirement. You’ll be much better off owning a cheaply-managed basket containing many different stocks—a “mutual fund.” I like index funds as they virtually ensure that, at a minimum, you’ll capture your portion of the economic growth of whatever sectors you’re investing in at a relatively low cost. If you want to pay more for “well-run” mutual funds, be my guest, but keep in mind that less than 20 percent of them will actually do better than the indexes.

A pastor can invest in a 403(b) using the same vehicles as any qualified or non-qualified retirement accounts (stocks, bonds, and alternatives). I strongly suggest no-load mutual funds and ETFs with low management fees. Passively managed index funds have become very popular with investors, as have retirement target-date funds. A pastor can read up on and study this topic and make their own choices, but they may have better things to do with their time (praying, studying, preaching, evangelizing, counseling, etc.).

Here is where an experienced financial planner/advisor can help. However, pastors should be wary of commission-based stock and insurance brokers and choose a fee-only planner or advisor they trust. They should also be very cautious about investing with a financial professional in their congregation; it can quickly become sensitive. If the pastor’s not happy or wants to make a change, relational difficulties can easily arise. That said, seeking wise counsel from someone in the church—perhaps the church business manager or stewardship deacon or pastor—is always a good idea. They may offer some high-level suggestions and point you to a reputable professional.

4.  The Home Purchase Decision

For many retirees, including pastors, home equity will be an “ace in the hole.”

For those reasons and others, most pastors should try to purchase a home and take full advantage of the tax benefits of homeownership. Churches have mostly gotten out of the parsonage business, so it’s beneficial to pastors and their families for several reasons. They can build their net worth by paying down principal and with market appreciation. Plus, the federal income tax law provides generous benefits to the pastor who is buying a home. Income taxes can be reduced and perhaps eliminated because of the housing allowance and additional deductions for mortgage interest and real estate taxes.

The goal is to have a paid-for house at retirement, thereby reducing housing expenses and making home equity available in retirement if needed. Home equity often becomes a large part of a retiree’s total net worth. They can tap it for income in various ways—equity line of credit, second mortgage, or reverse mortgage. That said, most financial professionals suggest using it only as a last resort.

God is on his throne

A pastor who makes wise decisions in these four areas and, most importantly, follows biblical principles of financial stewardship day in and day out will be doing what he can to put himself and his family on solid financial footing before and during retirement. God is on his throne, so the rest is up to Him.

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How Can A Church Sponsor A Retirement Plan?

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This is a guest post by Paul McWilliams, an independent financial advisor with Inspire Advisors who specializes in helping organizations set up and administer retirement plans. In addition to his technical knowledge, Paul is also a pastor’s kid! Paul can be reached for questions at paul.mcwilliams@inspireadvisors.com.

Retirement is a popular topic these days because most Americans are financially unprepared for it. Pastors and church employees are no different. While many workers have employer-sponsored 401(k)s to save into, a lot of pastors are left on their own. Over half of the churches in the country have less than 100 people in attendance each week, so many churches feel they are too small to sponsor a retirement plan for their pastor and staff. 

I’m here to tell you that it’s not true. No matter how small your church is, there are ways for you to sponsor a retirement plan and it doesn’t even have to be a financial burden. 

What Kinds of Retirement Plans are Available for Churches?

As both a church and an employer, churches can sponsor all kinds of retirement plans. They include 403(b)s, 401(k)s, SEP IRAs, SIMPLE IRAs, and even defined benefit pension plans. Each kind of plan has unique features and rules that apply to it.

One benefit that churches have is that they can choose whether they want to sponsor a plan that is subject to ERISA or not. ERISA stands for the Employee Retirement Income Security Act and is the legislation that governs most employee-sponsored retirement plans. ERISA has a lot of rules and requirements, which is why it can be a benefit for churches to be able to choose whether or not to be subject to it. 

In my experience, a non-ERISA 403(b) is often the best choice for churches. A 403(b) is a lot like a 401(k) as far as tax benefits and contribution limits, but they don’t have to be subject to ERISA. Not being subject to ERISA makes things a lot simpler. You don’t have to file Form 5500 or complete nondiscrimination testing, which is a huge opportunity for cost savings in comparison with a “typical” employer-sponsored retirement plan, like a 401(k). 

Before you start shopping for a retirement plan, you may want to check to see if your denomination or association of churches already has one that your pastor and staff can participate in. However, you should also know that just because they do, that doesn’t mean it’s the best option. You may still want to sponsor your own. My dad’s denomination offers a plan, but his church still decided to sponsor their own. 

What Features Should a Church Look for in a Retirement Plan?

One of the best features of a non-ERISA plan is the fact that you can favor certain employees, or discriminate. For example, let’s look at a church that has one pastor and a couple of regular full-time employees that are not pastors. The church could make the same employer contributions to each person’s account or they could offer the pastor one amount and the other employees a different amount (or even nothing). For churches who want to help their pastor but can’t afford to do as much for their staff as well, this is a great opportunity. 

I have seen churches address this in a variety of different ways. Some churches match up to 6% while others do not. Some don’t do matching contributions but rather contribute a fixed amount. Some contribute only for their pastor while others make contributions for all employees. It really is that flexible. 

Other beneficial retirement plan features that are often overlooked are the available contribution types. You can offer both pre-tax and post-tax (Roth) employee contributions. Employers can offer matching contributions and discretionary contributions. When I design plans for my clients, I like to make them as flexible as possible with a wide range of options. 

With contribution limits much higher than individual IRA limits, having a church-sponsored plan can be a real blessing for pastors and also gives churches more flexibility in how they compensate their staff. 

Considerations When Choosing a Retirement Plan

There are a number of different things you should take into consideration when choosing a retirement plan. One is how financially “healthy” a church is. You don’t want to promise matching contributions if you may not have the cash flow to make them. Still, you can design the plan so that employer contributions are “discretionary” so that you are not locked into a requirement to match or contribute as an employer. 

In my experience, when you have an open conversation with the church board and key members about the need for staff benefits like a retirement plan for pastors, they are “normally” 100% supportive. They want to make it happen for the benefit of their pastor that leads them. Pastors who want their church to sponsor a retirement plan often have me come in and present to the decision-makers so that I can explain how it all works and answer any questions they may have. 

Cost is an important consideration, but the decision should not be based on cost alone. While SEP IRAs or SIMPLE IRAs may cost less, they are often not optimal. Increased contribution limits and flexibility are often worth the increased cost. One thing that affects the cost is whether the plan has a plan document or a third-party administrator. Some plans require a plan document (such as a 403(b)(9) church plan) while others do not (like a 403(b)(7) plan). That being said, plan documents are helpful even if they are not required by law. Among the church plans I have helped set up, some have a plan document and third-party administrator and others have neither. 

Another thing to consider is who on your staff is going to manage everything? A lot of retirement plan responsibilities can be outsourced but there is always a cost to that. Alternatively, a board member or church member who is not on staff could also help with the administration. Where there is the most opportunity for error is in depositing money and making sure that the employees’ salary deferrals get into the plan properly and in a timely manner. 

How Pastors Can Claim a Housing Allowance in Retirement

One of the greatest benefits for pastors, besides being able to save more money in a tax-advantaged manner, is being able to claim a housing allowance in retirement. The minister’s housing allowance can only be given as compensation for ministerial services. However, if you wait until retirement to receive that compensation, it is still from ministerial services and therefore eligible for the housing allowance.

The key to claiming a housing allowance in retirement is that it must come from a church (or other housing allowance eligible organization)-sponsored retirement plan. Even if your IRA account was built with money you earned as a pastor, you won’t be able to claim a housing allowance from an IRA. It has to be from a church plan. For that reason, it’s extra helpful for a pastor when the church is willing to sponsor a plan. It also means that pastors should be careful not to roll all of their money into an IRA in retirement. 

This article is for informational purposes only and is not legal, investment, or tax advice. Consult your CPA or legal counsel when establishing a retirement plan and make sure to follow all IRS guidelines.

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