In last month’s e-newsletter, I discussed the Clergy Housing Allowance Tax Benefit for both working pastors and retired pastors. This article will examine the methods available in determining the annual housing allowance amount. Your excludable housing allowance amount will be the SMALLER of Method 1, 2 or 3: Method 1: The amount actually spent for housing this year Examples of housing expenses ... [...]
Are you taking advantage of the clergy housing allowance tax benefit? Did you know that retired pastors can also take advantage of the housing allowance tax benefit? Learn more [...]
You may think you don’t have the time or money to prepare for retirement. It doesn’t have to be complicated. By focusing on these five basic principles, you can start working toward your retirement goals now, even with limited resources. [...]
Welcome new LCMC congregations and pastors! Did you know that LCMC sponsors a retirement plan for pastors and staff? There are no fees for the church to adopt the plan and it is easy to do. You can find all the information about the plan at www.LCMC403b.com. The congregation adopts the plan by completing the Participation Agreement and Matrix ACH form. Pastors and staff complete the Related Employer Form ... [...]
The LCMC Retirement Plan offers several different types of distributions depending on your age and active status. Forms can be found by logging into your account and clicking on forms. Some distributions may be submitted online, others require a paper form. All distribution forms must be signed by LCMC. The distribution instructions can be found at www.LCMC403B.com. Click on “Plan Information”. [...]
Naming a beneficiary for your retirement account is an important task and should be completed as soon as you enroll. It will mean that probate, attorneys’ fees, and other costs associated with settling estates will be avoided. [...]
In 2023 you may contribute up to $22,500 via payroll reduction. Your congregation can also contribute to your retirement account. The IRS allows total annual contributions into your account of $66,000. If you haven’t started saving early, you still have time to increase your retirement savings. Those over age 50 may contribute an additional “catch-up” contribution of $7,500. For more information, go ... [...]
OneAmerica is the recordkeeper for the LCMC retirement plan. OneAmerica is committed to safeguarding their customers’ assets and personal information. In this environment where fraud and cyber risks are prevalent, OneAmerica uses a multi-faceted approach to guard against these threats. It is also important for you to do your part in safeguarding your account once you have enrolled in the plan. Here are some simple things you can do ... [...]
The IRS allows credentialed ministers to declare a housing allowance distribution from their 403(b)(9) Retirement Plan account in retirement. This means that the portion of your distribution used for housing expenses is excludable from gross income for income tax purposes. This can provide significant tax savings during retirement. The LCMC Retirement Plan is a 403(b)(9) Plan and specifically designed for LCMC ... [...]
It is the congregation’s––more importantly, lay leadership’s––responsibility to ensure that their pastors and families are cared for properly. Planning proper compensation and benefits for those who serve the church is an important task. Every church should see that the pastors and staff have adequate salary and retirement benefits established. The LCMC 403B Retirement Plan is a great vehicle for ... [...]
Naming a beneficiary for your retirement account is an important task and should be completed as soon as you enroll. It will mean probate, attorneys’ fees, and other costs associated with settling estates are avoided. If you are married and would like someone other than your spouse as your primary beneficiary, your spouse must sign and witnessed by a notary public. A trust may be named as a beneficiary. You ... [...]
The LCMC 403(b) Retirement Plan now has a new app for your mobile device that will allow you easy access to your account. To download the app, go to www.oneamerica.com/mobileapp. Participants can register and log into the app using the same username and password as their account. Call OneAmerica at 1-800-858-3829 with questions. Let them know you are with LCMC, plan #963003. [...]
Tom Luing of Capital Management Associates, will be available at the Annual Gathering to meet one-on-one with you about your retirement readiness. Contact Tom Luing by phone at (952) 746-1111 or via email at toml@tomluing.com to schedule a time and find out what to bring with you. Space is limited, so sign up soon! [...]
The Retirement Plan has added new Roth provisions as well as 2 new investment fund options. Roth Provisions: Roth After-Tax Contributions: Participants may contribute Roth after-tax contributions to their plan account. With Roth contributions, the dollars going into the plan have already been taxed, thus, no tax when withdrawn at retirement. Earnings of Roth contributions are tax-free when withdrawn at retirement ... [...]
We recently added an additional investment option in the LCMC retirement plan. Many people want to invest their money according to the values that drive other decisions in their lives. And subsequently, I’ve been asked by some participants in the plan about socially conscious investing.There is an entire subset of the investment industry called socially responsible investing. I became initially interested in this over ... [...]