Summary
Gives clergy members who previously opted out of Social Security a limited time to cancel that choice and start paying into the system for retirement.
What problem does this solve?
Some clergy members chose not to be in the Social Security system long ago and cannot change their minds, which could leave them without retirement money. This bill creates a special window for them to join Social Security, so they can have benefits when they get older.
What does this bill do?
Creates a window to rejoin Social Security
Allows clergy who previously opted out of Social Security to cancel that choice. They must apply by the tax return due date for their second tax year after December 31, 2028.
Makes the new choice permanent
Prevents clergy who cancel their exemption from ever applying for an exemption from Social Security again in the future.
Requires payment of back taxes
Requires applicants who file after a tax year's due date to pay in full the Social Security taxes they would have owed for that year.
Requires a public information plan
Directs the IRS and Social Security Administration to create a plan to tell clergy members about this new opportunity to join Social Security.
Who does this affect?
- Clergy members
- Social Security Administration
- Internal Revenue Service (IRS)
What is the real world impact?
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Provides a retirement safety net
Offers a way for clergy members who regret opting out of Social Security to get back into the system. This helps them build retirement benefits they would not have otherwise.
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Creates a special exception
Could be seen as giving special treatment to one group of workers. Other self-employed people who made different financial choices do not get a similar chance to change their minds.
When does this start?
The bill sets up a specific time frame for clergy to make this change, which would affect tax years after 2028.
Deadline to apply for revocation
Clergy must apply to cancel their exemption by the tax filing deadline for their second tax year that begins after December 31, 2028.
Deadline for public information plan
Within 90 days of the bill becoming law, the IRS and Social Security Administration must give Congress a plan on how they will inform clergy of this option.