If you’re a minister, you may have seen the headlines about a bill that could change the retirement picture for clergy. The good news is that there’s no need to panic.

Ministers who opted out of Social Security years ago may soon get a one-time chance to opt back in. On September 30, 2026, the Senate passed the Clergy Act (H.R. 227) by unanimous consent, following a 350–5 House vote in April. The bill now goes to the President for signature.

Short on time? Listen first. In under 5 minutes, our Kingdom Impact 5 podcast walk through what Congress just passed and what it could mean for ministers who opted out of Social Security. Listen to the episode: “Congress Passes Clergy Act…What’s Next?” Then come back here for the full breakdown. 

For many pastors, the decision to file Form 4361 and opt out was made early in ministry, often with little guidance about what it would mean decades later. The Clergy Act recognizes that reality. It is the first re-entry opportunity in more than 25 years; similar windows were offered in 1977, 1986 and 1999.

What the Clergy Act does

The bill lets eligible ministers revoke their Social Security exemption during a limited window. Here are the key provisions in plain language:

• Who can use it: Duly ordained, commissioned or licensed ministers, members of religious orders and Christian Science practitioners who previously received an exemption under IRC Section 1402(e).
• When: The revocation can take effect for your first taxable year beginning after December 31, 2028, or your second. For most ministers, that means tax year 2029 or 2030.
• Filing deadline: The application is due by the tax return due date, including extensions, for your second taxable year after 2028. For calendar-year filers, that is generally April 15, 2031, or later with an extension.
• One time only: Once you revoke, you can never apply for the exemption again.
• Benefits: Coverage begins with the year the revocation takes effect. Earnings before that year do not count.
• IRS outreach: The IRS must deliver an outreach plan to Congress within 90 days of enactment, so watch for official guidance and forms.

Who should pay attention

This matters most to ministers who filed Form 4361 and now have no Social Security or Medicare coverage on their ministry income. Opting back in is voluntary, and it is not right for everyone.

• Ministers 10+ years from retirement: You generally need 40 credits, about 10 years of covered work, to qualify for retirement benefits. Starting in 2029 or 2030 gives you time to earn them.
• Ministers with prior secular work: Credits you earned before ministry still count. Re-entering may help you reach 40 credits sooner or raise your benefit.
• Ministers worried about disability or survivor protection: Social Security also provides disability and survivor benefits, not just retirement income.
• Ministers close to retirement: The math is harder. You may pay self-employment tax for years without reaching full eligibility.

The cost is real. Ministers are self-employed for Social Security purposes, so re-entering means paying SECA tax of 15.3% on net ministerial earnings, including housing allowance. Your church cannot pay the employer half for you, so plan for higher quarterly estimated payments or ask about voluntary withholding.

What to do now

The window does not open until 2029, but the decision deserves careful thought well before then.

1. Find your Form 4361. Confirm that you have an approved exemption on file and when it took effect.
2. Pull your Social Security statement. Create an account at ssa.gov to see how many credits you already have.
3. Run the numbers. Compare the added SECA tax against the benefits you could realistically earn, given your age and expected retirement date.
4. Review your other retirement plans. Pensions, 403(b)s and retiree health coverage all affect whether re-entering makes sense.
5. Watch for IRS guidance. The IRS must publish an outreach plan, and new forms and instructions will follow.
6. Talk with your church. If you opt back in, your compensation package may need a self-employment tax allowance.

How Clergy Financial Resources can help

Whether to re-enter Social Security is a once-in-a-career decision, and it cannot be undone. Since 1980, Clergy Financial Resources has helped ministers navigate dual tax status, housing allowance and self-employment tax. Our team can review your exemption history, project the cost and benefit of opting back in, and help you plan your compensation before the window opens.

If you need guidance that is tailored specifically to your unique situation, we encourage you to connect directly with Pro Advisor Support. Their experienced team specializes in assisting clergy and church organizations with complex tax, payroll, bookkeeping, and HR matters. Whether you have detailed questions about compliance, deductions, or planning strategies, they can provide expert advice and walk you through the next steps with clarity and confidence.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101

This article is for general information and is not tax or legal advice. The Clergy Act was awaiting the President’s signature as of October 6, 2026.

Sources

• H.R. 227, Clergy Act — engrossed bill text (govinfo.gov)
• Senate passes Britt’s bill giving clergy a second chance at Social Security (Alabama Reporter, Oct. 2, 2026)

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com