If you've ever watched a child on Christmas morning, you've probably seen it happen.
They tear into an expensive toy with great excitement, play with it for five minutes, and then spend the next hour pretending the cardboard box is a spaceship, pirate ship, or castle.
Sometimes the greatest value isn't what everyone notices first.
The Minister's Housing Allowance reminds me of that.
Most pastors know the housing allowance helps reduce taxes while they're actively serving a church. That's a wonderful benefit, and one that can make a real difference for ministry families.
What many don't realize is that one of the greatest advantages may not come until years later.
When retirement savings remain in a qualifying 403(b)(9) church retirement plan, such as the one offered by Servant Solutions, eligible retired ministers may be able to designate qualifying retirement distributions as housing allowance. Over the course of retirement, that can mean thousands of dollars remain in your pocket instead of going to taxes.
I've also known pastors who sensed God leading them into a different season. Perhaps they accepted a position in the business world for a time, or simply needed to provide for their family in a different way. Sometimes they wondered, "Have I lost this benefit?"
Not necessarily.
If you maintain your ministerial credentials, the retirement dollars you earned while serving in ministry don't suddenly lose their character simply because your current job changes. Those ministry-earned retirement assets still qualify for the housing allowance in retirement, provided they remain in a qualifying 403(b)(9) church retirement plan.
That's an important distinction.
At Servant Solutions, we believe good stewardship isn't just about growing your retirement savings. It's also about protecting the unique benefits God has made available to those He has called into ministry.
If you're a pastor, you don't need to become a tax expert, but you do owe it to yourself and your family to understand this remarkable benefit. A little time spent learning today can have a lasting impact on your financial future, both during your ministry and throughout retirement.
That's why we've created articles, webinars, videos, and personal consultations to help ministers understand how the housing allowance works and how to make wise decisions along the way. Whether you're just beginning your ministry, approaching retirement, or serving in a different vocation while maintaining your ministerial credentials, we'd be honored to help you understand the opportunities available to you.
The more you learn about the housing allowance, the more you'll appreciate the importance of keeping your ministry retirement dollars in a qualifying 403(b)(9) church retirement plan. That's one of the many reasons Servant Solutions has been helping ministers steward their retirement savings for generations.
Sometimes the greatest blessing isn't the one everyone sees first.
Sometimes it's the box.
Jim O’Bold
Jim O’Bold is President of Servant Solutions and a Certified Retirement Planning Consultant (CRPC). He holds a BA in Management from Anderson University and an MBA from the University of Indianapolis. With 24 years of banking experience and a background in pastoral ministry, Jim brings a unique perspective to serving ministers and churches. He is passionate about helping others make wise financial decisions and steward their retirement well.