1) Housing allowance doesn’t stop when you retire.

The single greatest tax benefit for ministers is housing allowance. Salary amounts designated each year as housing allowance by the church and used by the minister for housing expenses are not subject to federal income taxes.* Yet many ministers falsely believe this benefit ends when they retire.

Normally, pre-tax contributions and earnings in qualified retirement plans are taxable upon distribution; however, ministers in the SBC Church Retirement Plan at GuideStone® can request that a portion or all their retirement income be designated as housing allowance. And to the extent the minister spends these funds on housing, this retirement income is not subject to federal income tax.*

2) Benefits are available from your state convention.

Ministers who contribute $50 per month or more through their church into the SBC Church Retirement Plan may qualify for free benefits from the Baptist Convention of Iowa. These include a survivor benefit of up to $100,000 and a disability income benefit of up to $500 per month for up to 5 years. And the Convention may make discretionary contributions each year into the minister’s retirement account. These benefits are another incentive to save for retirement in the SBC Church Retirement Plan.

3) GuideStone has online resources designed specifically for ministers.

Get answers to your questions about ministerial tax issues, housing allowance and reporting requirements for churches. Plus, find resources to help your church 1) establish market-based compensation plans for ministers and staff and 2) best structure salary and benefits to help ministers minimize taxes and increase take-home pay. Visit GuideStone.org/MinisterialResources or call 1-888-98-GUIDE (1-888-984-8433) Monday through Friday, from 7 a.m. to 6 p.m. CT.

Joel Rister is a senior retirement relationship manager at GuideStone who serves churches in Iowa and other states. He has served in various roles at GuideStone since 1999 and is an ordained minister who served for over 25 years at various churches in Texas. You can contact Joel directly at (214) 720-2154 or Joel.Rister@GuideStone.org.

* Housing allowance is limited to the lower of 1) the amount designated in advance, 2) actual housing expenses, or 3) the fair rental value of the home (furnished, including utilities) for those who own a home.

The information in this article is for educational purposes only and is provided with the understanding that GuideStone is not rendering legal, financial or tax advice. We encourage you to consult with appropriate counsel and other advisors on all of your unique financial obligations and requirements.

Not on Guidestone yet? Church staff can sign up now!

Any church staff members in BCI affiliated churches can receive this and many other benefits by creating a GuideStone account. For leaders not yet in the GuideStone system, the first step is to start a retirement account. See the linked flyer for more information about the many financial benefits available to pastors and church staff through our partnership with GuideStone.