Social Security

[rbennett]

Just learned ordained ministers do not have to pay into social security.

I am thinking not to pay the TAX.
I have worked over 25 years in a secular job so I am vested in the system and can receive a check when I retire.

Whats the pro and cons?

[Sherri]

Originally Posted by rbennett

Just learned ordained ministers do not have to pay into social security.

I am thinking not to pay the TAX.
I have worked over 25 years in a secular job so I am vested in the system and can receive a check when I retire.

Whats the pro and cons?

The only way you can opt out of SS is if you are willing to state that you believe that the government should not take care of widows, orphans, etc. - that it is the church's responsibility.
Ministers who opt out of SS and then do not set up a 401-K are not being financially wise.

[Ferd]

You better consult a tax lawyer and get very clear and defined legal advice about what you can and cannot draw from SS if you opt out at this point.

I am not sure you are accurate in your assessment.

You had also be very certain of you other retirement plans. I will never forget something that happened 20 years ago when I was in college. I was waiting tables at a Bonanza and this elderly couple came in. He was a retired pentecostal minister who had opted out of SS. they packed food from the buffett into thier pockets to take home.

The owner of the place and I talked about it. He knew their story and made sure no one bothered them. Utter poverty because they had not provided for themselves.

[Amanah]

I hate to say it, but I guess they expected the rapture to solve their retirement problems . . .

[RandyWayne]

Originally Posted by Amanah

I hate to say it, but I guess they expected the rapture to solve their retirement problems . . .

That is actually a huge issue with younger people who attended church in the 80's. They (the churches) made it feel like the rapture was imminent and no one could possibly be around in 20 years, much less 40 or 50 when they had to think about retiring. Even my dad didn't put one red cent away until about 95 or 96 when it dawned on him that he will probably live to see old age.

[rbennett]

Originally Posted by RandyWayne

That is actually a huge issue with younger people who attended church in the 80's. They (the churches) made it feel like the rapture was imminent and no one could possibly be around in 20 years, much less 40 or 50 when they had to think about retiring. Even my dad didn't put one red cent away until about 95 or 96 when it dawned on him that he will probably live to see old age.

I was taught to plan as though Jesus is never coming back and live like he is coming back today...

Originally Posted by Sherri

Ministers who opt out of SS and then do not set up a 401-K are not being financially wise.

Yes 401k is very important... as pastor, we should prepare for our retirement either by investing ourselves or asking the church to contribute as part of the compensation package. I do have a retirement plan.
With the SS tax... I feel I can get a better return on the 15% I give to the government then what the government is going to give in return. Plus, with a 401k, if I go to meet Jesus before my wife does, she will have some money to live on... with the SS system she receives $250 to bury me with... whoo hooo...

As far as professional advice... I am asking
Per the IRS.gov web site a person is vested in SS after 10 years.

Being a pastor is a job... the pay is not that good... but the retirement is out of this world...

[Digging4Truth]

Originally Posted by RandyWayne

That is actually a huge issue with younger people who attended church in the 80's. They (the churches) made it feel like the rapture was imminent and no one could possibly be around in 20 years, much less 40 or 50 when they had to think about retiring. Even my dad didn't put one red cent away until about 95 or 96 when it dawned on him that he will probably live to see old age.

I had an evangelist friend who lived by the concept "I'll run up all my credit cards and leave it for the antichrist to pay".

He later became a preterist. Bummer huh?

[RandyWayne]

Originally Posted by Digging4Truth

I had an evangelist friend who lived by the concept "I'll run up all my credit cards and leave it for the antichrist to pay".

He later became a preterist. Bummer huh?

There were quite a few people who normally would have known better who were caught in the rapture fever and made NO plans for the future.

[ILG]

Originally Posted by Sherri

The only way you can opt out of SS is if you are willing to state that you believe that the government should not take care of widows, orphans, etc. - that it is the church's responsibility.
Ministers who opt out of SS and then do not set up a 401-K are not being financially wise.

Do you have to formally state this? I don't remember that at all. I think maybe you are stating your belief here rather than a law???

[ILG]

Originally Posted by RandyWayne

That is actually a huge issue with younger people who attended church in the 80's. They (the churches) made it feel like the rapture was imminent and no one could possibly be around in 20 years, much less 40 or 50 when they had to think about retiring. Even my dad didn't put one red cent away until about 95 or 96 when it dawned on him that he will probably live to see old age.

Yikes! We are behind on our retirement savings simply because we put so much into churches. We thought we were being smart back then. Now it just feels kind of like we were ripped off. Granted, we chose to do this just like your Dad did, but it was encouraged. Oh, all the $1000's of dollars now all owned by the UPC.