The Baptist Press
By Scott Barkley, posted March 12, 2025 in National News
WASHINGTON, D.C. (BP) — A bipartisan bill may give ministers who decided long ago to opt out of Social Security benefits the chance to change their minds.
The Clergy Act, submitted by Sens. Katie Britt (R-Ala.) and Maggie Hassan (D-NH), would allow for a period in which clergy may revoke their exemption from Social Security coverage. Another version of the bill has been reintroduced by Reps. Vince Fong (R-CA) and Mike Thompson (D-CA) in the House.
A dual tax status accompanies one who becomes a minister – as an employee for federal income taxes and self-employed for Social Security tax purposes. The decision to opt out of Social Security must be made within the first two years one has ministerial earnings of more than $400 a year.
Opting out results in more take-home for the minister but sacrifices a large portion of anticipated retirement income. It may also affect eligibility for standard-priced Medicare as well as Social Security disability benefits should he become disabled before retirement age. Potential survivor benefits from Social Security may also be denied to a minister’s wife and children.
GuideStone Financial Resources of the Southern Baptist Convention is prepared to provide guidance to ministers should the Clergy Act become law, said GuideStone President and CEO Hance Dilbeck. More Here
