Clergy Tax & Financial Seminar Insights
Discover valuable insights on financial planning, insurance, debt management, and retirement strategies discussed at the clergy tax and finance seminar. Learn about the oldest form of insurance in the Bible, money management tips, and the importance of being properly insured. Gain knowledge on saving, giving, and living wisely with expert advice from professionals in the field.
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Presentation Transcript
Clergy Tax and Finance Seminar Sponsored by the Team of the Cumberland Presbyterian Church By Mark Hester, Minister and Financial Planner (Ret.) markstephenhester@gmail.com (865) 924-2732 June 21, 2023
Do you know the oldest form of insurance in the Bible?
More is said about money and riches in the Bible than about heaven and hell combined.
The oldest form of insurance in the Bible was Joseph who stored for 7 years and was able to feed his family, all of Egypt and all of Israel with the savings.
Use Professionals Financial Planners Insurance Agents Attorneys CPAs
Stay out of debt, and if you are in debt, work to get out
Save 10% of your money, give away 10% of your money and live on 80%
How much do you need in savings outside of retirement?
A salary continuation plan is recommended
Do you need long term care insurance?
Social Security and Medicare are the biggest insurer and provider of retirement benefits. Go to www.ssa.gov to open an account!
When do you take SS retirement? Numbers 8:25, at the age of 50 they must retire from their regular service and work no longer.
Where you live can be very important to your financial security.
Housing expenses include Housing expenses include: down payment, loan payment, real estate taxes, insurance, utilities, internet, furnishings, appliances, structural repairs, yard maintenance, improvements, and HOA.
Other salary reduction options include: Other salary reduction options include: insurances, your tithe, retirement, business reimbursement expenses, health savings accounts and cafeteria plans under section 125.
Whats tax free? Roths $6500 cap in 2023 and can do less. Catchup if over age 50 another $1000 Never pay tax on gain or retirement distribution Never required to take it out Passes tax free to heirs Add $ as long as you have income Does not reduce your SS earnings Privacy from church Roths: :
What is the best tax deferred option for clergy? 403Bs or also called tax sheltered agreement
403Bs or TSAs: 403Bs or TSAs: Must be SRA (salary reduction agreement) cannot be private er has to put money in for you can put in up to $22,500 a year and catch up is $7500 in 2023 invest privately or use denominational plan can pass tax deferred to spouse but the non- clergy spouse or heirs will have to pay income on distributions
Traditional IRAs are a tax deferred option: Traditional IRAs are a tax deferred option: Add up to $6500 per person (working and non-working) catchup of $1000 more if 50 or older can add for prior year up to the tax filing date for the prior year use mutual funds geared to risk tolerance can pass tax deferred to spouse but taxable to estate
Tax Favored: Tax Favored: Tax free municipal bonds or bond funds Tax managed mutual funds Zero coupon bonds Rabbi Trusts ETFs
Retirement Distributions: Retirement Distributions: 59 is the normal age to take with out penalty from the IRA, there are some exceptions can start early sometimes RMD 70 changed to 72 Automatic enrollment in 401(k)s moving forward with progressive 1% increase annually unless cancelled by EE Might see incentive gift cards being offered in the future
Estate Planning: Estate Planning: Confirm beneficiaries are correct every 3-5 years Do you need a trust? Do you need a will?
Shred after 7 years: Shred after 7 years: Tax receipts Tax related cancelled checks W-2s / 1099s Tax deduction records
Keep for life: Keep for life: Tax returns Birth Certificate SS cards Passports Death / Birth / Marriage Certificates
Keep While Useful: Keep While Useful: Vehicle Title Deeds Pay stubs Disputed medical bills Home improvement
Helpful Resources: Helpful Resources: SSA.gov ChurchLawAndTaxStore.com (Richard R. Hammer s book Church & Clergy Tax Guide 2023) Office on the aging in your county (for senior services) Ministry and Money by Janet T. Jamieson and Philip D. Jamieson (one of the textbooks used by MTS for their financial class) Get on a newsletter mailing list with a reputable broker
Clergy Tax and Finance Seminar Sponsored by the Team of the Cumberland Presbyterian Church By Mark Hester, Minister and Financial Planner (Ret.) markstephenhester@gmail.com (865) 924-2732 June 21, 2023
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