No matter where you are on your Retirement journey, Servant Solutions is here to help you plan with confidence. Here are five strategies to consider as you save and plan. Servant Solutions wants to be your life-long financial planning partner. We’re available with multiple tools and planning documents to help you arrive at your retirement years well-funded.
We believe your leadership is a divine calling, instrumental in building and nurturing the spiritual growth of those in your community. In this blog we offer some suggestions for leaders to proactively protect and prepare themselves for the strain of ministry roles. It is our hope that with this knowledge, you'll be better equipped to lead well and make a lasting impact for Christ.
We want to shed light on a valuable financial resource available to you: the Saver's Credit. This often overlooked tax credit is designed to encourage low- to moderate-income individuals to save for retirement while reducing their tax burden. Understanding how the Saver's Credit works can help you maximize your savings potential and help secure a brighter financial future.
The Saver's Credit, also known as the Retirement Savings Contributions Credit, is a tax credit available to eligible taxpayers who contribute to a qualified retirement savings plan, such as a 401(k), 403(b), or IRA. This credit directly reduces the amount of federal income tax you owe, making it a valuable incentive for saving for retirement.
The amount of the Saver's Credit depends on your filing status, adjusted gross income (AGI), and the amount of your eligible contributions to retirement savings plans. The credit ranges from 10% to 50% of your contributions, up to a maximum credit of $1,000 for individuals or $2,000 for married couples filing jointly.
For 2023 (taxes filed in 2024), it can be claimed by:
Single (or married filing separately) individuals with incomes up to $36,500
Heads of households with incomes up to $54,750
Married couples filing jointly with incomes up to $73,000
In addition, to be eligible for the credit, you must:
· Be at least 18 years old.
· Not be a full-time student.
· Not be claimed as a dependent on someone else's tax return.
As a member of Servant Solutions, you have access to free financial planning services and resources to help you navigate your financial journey. Our team of experts is here to provide guidance on maximizing your retirement savings, understanding tax benefits like the Saver's Credit, and planning for a secure future.
The Saver's Credit can be a valuable tool allowing you to keep more of the income you earn. In order to claim it and calculate the exact amount of your credit, complete Form 8880 with your tax return. You can find more information here on the IRS website.
Servant Solutions continues to uphold its mission of "Serving Those Who Serve" and strives to improve the financial security of all church staff. One invaluable tool we advocate for is the incorporation of the Minister's Housing Allowance into compensation packages—a critical step towards enhancing retirement planning and overall financial well-being.
Solomon, the wisest man who ever lived, wrote: “There is a time for everything, and a season for every activity under the heavens” (Ecclesiastes 3:1). That includes retirement. In some occupations, retirement is voluntary. In others, it is mandatory. The appropriate age is different for a pro football player than a Walmart greeter. Regardless of the nature of your employment, there will come a time to step down and make room for younger leaders.
Ministry is a high calling. Most of our servant leaders could command a higher salary in the for-profit world, but they have chosen to use their gifts and talents to serve the Lord. What is proper compensation? The church setting is indeed unique, and often a helpful question for church leaders to ask is “What would persons carrying similar responsibilities in other vocations be paid?” Servant Solutions, as part of our ministry to the church, stands ready to help your congregation in any way possible. We invite you to visit our Church Compensation Planning page at servantsolutions.org. There you will find additional resources that we have found to be reliable and helpful.
