Ordained Minister

[MAMalody]

In reference to what religion is exempting out of SS in my client base, I have not tracked it specifically. My client base seems to be about 60% Baptist. There have been some that opted out for economic reasons...when I asked who counseled them on this, it was their pastor as they were going into the ministry. I had a couple who opted back into the system a couple of years ago when that was possible. Most of the pastors that ask me about it, determine that they cannot opt out when the reason for opting out is clearly explained to them. I would say that the majority of my clients that have opted out did so for religous reasons.

Whether others may agree with their reasons, understand their reasons or have been exposed to teaching that would support this is not really relevant. The exemption exists and can be exercised if you fit the criteria, just like any other tax benefit or burden.

[veritas]

I will start collecting SS

in the year 2017, the year it is projected to start paying out more than it takes in. I would appreciate it greatly if our pastors/clergy would start helping me out.

There should be no exemption from fica whatsoever for anyone.

[MAMalody]

in the year 2017, the year it is projected to start paying out more than it takes in. I would appreciate it greatly if our pastors/clergy would start helping me out.

There should be no exemption from fica whatsoever for anyone.

Why? They that don't pay in, don't withdraw, that's part of an approved Form 4361...seems pretty fair to me.

[Bird Legs]

MAMelody

What you say is true, except for the people in Congress. If they had to pay in to Soc. Sec. and depend on that, there would be some great changes made.

[taxmandan]

Move south of the border

How are they going to obtain medical care without insurance?

Best deal going is to retire south of the border. For $180 a year, older residents of Mexico can enroll in their "Medicare" program and receive all medical care without further cost. The care is frequently better than here in the US of A, and the medical people speak english (better than some here). Many Norte Americanos are heading to Mexico for lower living expenses, nice climate and good, low cost medical care.

NAFTA reality: They move up here to work, and we move down there to retire!

[veritas]

I'm Wondering

Why? They that don't pay in, don't withdraw, that's part of an approved Form 4361...seems pretty fair to me.

If a pastor filed for exemption and his wife worked and qualifies can the pastor receive one half of his wife's benefit at retirement age?

[veritas]

To answer my own question

Found this.......

5) Can ministers who have opted out of Social Security receive retirement and Medicare benefits based on the fully insured status of their spouse?

Yes, according to the Social Security Administration. To the extent that a minister's spouse is fully insured under Social Security as a result of nonministerial services, Social Security benefits the minister receives as a result of his or her spouse's Social Security coverage are not based on services performed in the exercise of ministry and so are not precluded by the minister's exemption. However, the minister's benefits will be reduced by the so-called "windfall elimination provision." Under this provision, the Social Security Administration can reduce the benefits of persons who did not pay Social Security taxes, such as exempt ministers seeking benefits on the basis of their spouse's coverage. For more information on this important limitation, contact your nearest Social Security Administration office.

So a pastor/clergy has exempted out and still collects. Nice scam.