Taxes

• Estate Taxes
• Tax Services
  Financial Stewardship does not collect personal information about individuals except when such individuals voluntarily provide the information to Financial Stewardship. For example, such information may be gathered when an individual sends an e-mail via the E-mail Us button. Personal information on individuals is collected for Financial Stewardship use only; at no time will this information be sold or otherwise transferred to third parties. As a tax preparation firm Financial Stewardship is bound by the highest confidentiality standards.
• Roth IRA
  I HAVE A TSA, BUT A MINISTRY FRIEND SAYS A ROTH IRA IS BETTER BECAUSE IT IS TAX FREE. SHOULD I SWITCH TO A ROTH IRA?
• Real Estate Taxes
  Basically, most expenditures to provide a home for the dual status minister and family can be bought with income tax free housing allowance dollars. This includes rent or principal payments, real estate taxes, mortgage interest, insurance, improvements and repairs, furnishings, appliances, decorator items (rugs, drapes, art, painting, wallpapering, etc.), linens, towels, utilities (including non-business phone use), exterior costs (lawn mower, garden hose, lawn tools, etc). The following are specifically excluded as housing allowance expenses: maids or hired lawn care, personal toiletries, paper products, clothing, jewelry, or items strictly for personal use. A comprehensive list is included in our Audit Proofing Your Church & Its Clergy.
• Tax Deductions
  It depends. A TSA (or 403B) accepts pre-tax contributions which grow tax-deferred until withdrawal when they are taxed. With a TSA the tax advantage is in not paying taxes on contributions, and tax-deferred growth, both considerable advantages. A Roth IRA is an after-tax account, i.e. no tax-deduction for contributions. However, principal does grow tax-deferred. Both principal AND earnings may be withdrawn tax-free when you have had the account for at least 5 years AND you have attained the age of 59 1/2. Which one is best for you depends on your present tax exposure. If you are paying federal income tax now, the TSA will likely work best. But if you have restructured your compensation and are not paying any income tax, you'll definitely be better off by contributing to a Roth IRA.
• Income Tax
  Clergy compensation received in the form of a properly structured benefit package is free of federal, state, and city income taxes, as well as Social Security taxes.

Planning

• Retirement Planning
  Financial Stewardship can design a retirement package for your unique ministry situation, including retirement planning, life, health and disability insurance, as well as long-term care insurance. Call today at 800-362-1837.
• Long Term Care
  Components of a benefits package may include the following: 403(b) TSA retirement savings plan; health/dental/vision insurance; disability income insurance; long term care (LTC) insurance; and up to $50,000 of term life insurance. Out of pocket medical expenses may be reimbursed tax-free as part of a properly structured medical reimbursement program. Please contact us to discuss which particular programs are allowable.