Financial Services:

Clergy Housing Allowance:

Integrate your Housing Allowance in a Tax Advantaged Plan

Clergy Advantage® offers expertise in clergy tax that transcends just preparing tax returns. Discover the advantage of having a qualified financial advisor and tax planner work together to develop the most efficient strategies just for you.   Make sure all of your clergy tax benefits are properly incorporated in your financial plan, especially in your retirement planing.  We offer a complete suite of integrated services for today’s clergy that includes:

  • Specialized Retirement & Advanced Housing Allowance Strategies
  • Tax Managed Investment
  • Estate Planning
  • Life Insurance
  • Lon Term Care Planning or Insurance
  • Discounted Disability, Accident, and Critical Illness plans for Ministers
  • Overseas Travel Insurance
  • Health Insurance for Colorado Residents

The Clergy Advantage® Retirement Plan for ministers and church staffs

The Clergy Advantage® Retirement Plan gives the non-denominational pastor the same advantages as those with a denominational plan. Add the features in the blue boxes together and you’ll see that for most ministers this retirement plan far outweighs any other retirement options. These advantages can translate into thousands of dollars of savings, plus tax-free income during retirement via the clergy housing allowance! Where else can you find a plan to reduce State, Federal and Social Security tax now and during retirement?

Retirement_Savings_Options

You owe it to yourself to see if a Roth IRA is a good strategy for you. We’ve used and advocated converting retirement income into a Roth IRA for many people over the years, but it has become even more appealing due to new tax provisions for 2010.  Some of the restrictions on converting money to a Roth have been removed and you can actually undo any portion of  the conversion as late as October of next year. 

Who should look at a Roth IRA Conversion?

This is an individual discussion because of all the various concerns and factors for each situation. We’re suggesting that everyone take a look at the benefits of converting some or all of a regular IRA into a Roth, particularly if you’re a married minister or in a high or low tax bracket.  Many ministers in the 0% tax bracket don’t realize it because of their housing allowance. These people definitely meet some of the criteria to consider a Roth conversion.   However, you can’t automatically disqualify yourself if you fall into the middle ( 10-15% ) tax brackets either.  Don’t believe you’re too young or too old for this strategy to work for you, either.  For many, but not all ministers, the best time to consider this strategy is when housing espenses are highest.   

Your state tax and estate plan need to be taken into account, as well as,  the cost and possible tax ramifications for the year of the coversion and a myriad of other factors, so it’s not as simple a calculation as one would hope.   Most people shouldn’t  try  to  figure this one out on their own.  The best way to determine and weigh all of the necessary factors is to evaluate your situation carefully with a qualified tax planner and financial advisor.  We’ll go deeper into the ramifications and criteria if you’d like to call us for a personal evaluation or join us for a  free webinar for more details. Learn more details of Roth IRA Conversions  in a free webinar to discover more about Who should convert and Why. Click here for information or to Register.