By Ellen Daniels
Yes, I work for Servant Solutions! But what you need to know is that I love what I do! You see, as a pastor’s wife of 40 years, being in a position to help pastoral families better prepare for their future is a tremendous blessing and has become a calling for me. So, let me share a few things with you about Servant Solutions to ensure you are taking advantage of all you can to best prepare for your retirement years. And if you don’t yet have an account with us, forget reading this article. Jump to the end and just go ahead and call me! I’d be honored to share why we are a great solution for you.
For all others, I want to let you know the fee you pay with us really is a very low fee. Our fee is low because we are a non-profit ministry, not a business! A fee is required for all retirement accounts. Why not invest more of your money by paying a lower fee with us?
We offer free financial planning! I know you’ve probably heard us share this fact before. But, if you have not taken advantage of this gift, it is time! I used to believe we did not need financial planning because we did not have a lot of money. But, the opposite is actually true! We now regularly meet with a financial planner to learn different strategies of how we can make the most with what we do have. We may not be millionaires, but we are smart enough to learn how to maximize our resources.
If you are a credentialed pastor (licensed or ordained), contributing to a 403b(9) account is brilliant because you will be able to claim the Minister’s Housing Allowance Tax Benefit in your retirement years. According to the IRS, you can only do this through a 403b(9) Plan, such as Servant Solutions. What this will mean for you is that if you contribute through our Pre-Tax Traditional 403b(9), you are deferring (or not paying) taxes up front. Taxes will also be deferred on all your earnings during your working years. In retirement, you can take distributions from your Servant Solutions account tax free if you use the money to cover housing expenses. So, that money will have never been taxed! What a huge tax savings for the rest of your life!
As a Servant Solutions account holder, you also have access to free family legal documents. These online documents can be prepared by every account holder and spouse. You can create a will, power of attorney, medical power of attorney, medical authorizations, etc. for no charge! This is not retirement but is another way to take care of your family by planning ahead.
One of the programs I absolutely love about Servant Solutions is our Newly Ordained Pastor Program. If you were ordained within the last two years, we would like to bless you with a gift to help jump start your retirement savings. We will give you $500 to deposit into a newly opened Servant Solutions account. Or, if you already have an account with us, we will simply deposit your $500 gift. After two years of regularly contributing towards your account at any level, we will bless you with another $500! We do this to encourage the healthy habit of saving for retirement years. If you know of someone newly ordained, please share my contact information with them.
We offer a variety of ways to contribute to your retirement account. One of them is the Roth option. Everyone seems to be talking about Roth these days! With a Roth 403b(9) you pay taxes on your contributions today while enjoying tax free distributions when you withdraw in the future (provided certain requirements are met). What this means is that the earnings you accumulate on your Roth contributions are never taxed! For many non-ministerial employees, Roth contributions often may be the best strategy for lowering overall taxation. However, a minister would likely want to continue to make contributions pre-tax because he/she can make tax-free withdrawals in retirement utilizing the housing allowance tax benefit. Sometimes the Roth option makes sense due to your overall family income picture. To make the best decision, speak to your tax professional or a certified financial planner.
Lastly, please share about Servant Solutions with any other churches or non-profit ministries you may be aware of. We may be a great solution for them as well; and as more organizations come on board with Servant Solutions, your costs stay low.
If you have any questions or need more information, please know we stand ready to serve! Call our 800# below or email me directly!
Ellen E. Daniels
Director of Engagement
Servant Solutions
(800) 844-8983
edaniels@servantsolutions.org
