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Tax Free Money for Ministers [Shared]

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Ali Alatas

on 23 June 2017

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Transcript of Tax Free Money for Ministers [Shared]

Tax-Free Money for Ministers
Who is a "Minister"?
Each Denomination has Established Guidelines
Considerations for Non-Denominational Churches:
Sacerdotal Functions
Worship Leader
Ordination, Licensed, or Commissioned
4 Tax Rules
I. Dual Employment Status
III. Eligible for Social Security Exemption
IV. Housing Allowance
II. No Mandatory Withholding
Your 3 Advantages
Housing Allowance
Unique Housing Allowance Experience
Mr Housing Allowance
Housing Allowance
Ministry Income ONLY
Cannot exceed housing expenses
Cannot exceed fair rental value of house, furnishings and utilities
Must be designated by board or church official
What Can You Claim?
What Counts?
Appurtenances Thereof?
Frequently Missed!
Accountable Plan for Ministry Expenses
Money In Your Pocket
Reduce Audit Risk
Congress fully intends and has made provisions for ministry professionals to deduct their ministry expenses as "business expenses."
You Have Two Options:
1. Itemize expenses on your return; or
What Can an Accountable Plan Do?
Save Tax
Most Overlooked Expense
2. Do it the right way in an Accountable Plan
Properly Identify Business Expenses
Provides Audit Protection
Home Entertainment
Home Cooked Meals $25-75
Employer Sponsored Plans
Might be an option if:
Opted out of Social Security
Pay no state and federal tax
Retirement Account Comparisons
Contributions might be tax deductible
Will you have a housing allowance in retirement?
Traditional IRA
No savings on Social Security Tax
Withdrawals are always taxable
Low contribution limits
Retirement Account Comparisons
Withdrawals are usually tax free
Roth IRA
Contributions don't save income or social security tax Low contribution limits
Tax-Free Principle withdrawals ANY TIME
Simplified Employee Pension Plan
Simple IRA
Secular 403b Retirement Plan
Your Best Options
A Denominational Plan
The Clergy Advantage 403(b)
Save Social Security tax & Income tax
Total contribution limits up to $57,000/yr
Withdrawals may be Tax-Free as housing allowance
Not an ordinary retirement plan
World class money managers
Roth options
Guaranteed income options
Structured investment options
Superior Features of the

set-up fees

withdrawal fees
fees to the church
individual account fees
Customize Your Portfolio to Match Your Values
Global commercial real estate
Socially responsible
90+ Investor Options
Commodities and hard assets
Or Wherever You Go
Portable from Church to Church
Housing Allowance Security
Even though you may have another retirement plan available, you can still use the Clergy retirement for diversification and additional benefits
Your Best Options
Financial Coaching for Ministry Professionals
Holistic Tax and Financial Plans
Personalized Housing Allowance Strategies
Schedule Today
Full transcript