New Bill Would Give Ministers the Opportunity to Opt-in to Social Security

Congressman Kevin McCarthy recently held a press conference with local pastors about his newly introduced bill, the Clergy Act. This bill would offer ministers – many of whom opted out of paying into Social Security in their youth – a two-year “open season” to effectively opt-in to Social Security. McCarthy released the following statement:

"In speaking with pastors throughout our community and faith leaders across the country, it became clear to me that clergy members need more choice and adaptability when it comes to planning for their retirement, including the ability to opt back into Social Security."

The Clergy Act would allow ministers who have previously opted out of self-employment social security to opt back in. Dan Busby, ECFA’s president, said “This opt-in provision is long past due and on behalf of ECFA’s over 2,400 members, we salute Representative McCarthy for introducing this legislation.”

An application must be filed by a minister no later than the due date of the Federal income tax return (including any extension thereof) for the minister’s second taxable year beginning after December 31, 2020. This proposed legislation does not require the payment of retroactive social security taxes for years before the opt-in is effective.

For more information, read the full article here, or view the bill here.

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.