Opting out of Social Security is a serious step, not to be taken lightly.
First, Check with your CPA. laws change and your accountant is, or can be up to date on them.
Second, some kind of Social Security benefit will likely be available when you retire regardless of current government issues, so opting out because you don’t trust the future of the system may not be the best approach.
Third, my Medicare Advantage program is fantastic. There is no way I could afford the Medicare benefits on my own. If you fully opted out of social security, especially at a young age, You may not qualify for Medicare when you retire.
Fourth, the “opt out” option is for religious/conscious reasons, not financial. Read carefully the statements you are claiming before you decide.
Fifth, only income earned from ministry counts for this Social Security option. If you earn income from other than ministry purposes, you will pay S.S., however, if you do earn from other than ministry employment you can also benefit from S.S. if you hit a Life time threshold by retirement.
Sixth, if you are older at the time you opt out, it is likely you are vested. In this case your taxable income from ministry may be greatly reduced by opting out of S.S (Even more so if you qualify for housing allowance) plus you receive all the benefits of S.S., Including Medicare.
Seventh, you must be a licensed minister to qualify. (Warning, do not rely on shortcut, “buy your ministers license here...” programs, you may be vetted and those licenses are not accepted.)
Finally, God willing, most of you reading this will eventually retire from active full time ministry. If you plan well and save for retirement, you can continue to receive tax advantaged income (Including Housing Allowance) throughout your retirement years.
Once again, it is important you consult with your tax accountant to determine the best approach for you and your family. If you don’t have a qualified CPA to inform your decisions, you can contact Jeff Ingram ...email@example.com