Opting Out of Social Security
Understand what opting out means and the long-term considerations for clergy
Some clergy explore whether they can opt out of Social Security due to religious objections. While the option exists under federal law, it is a complex and permanent decision with long-term financial implications. This page outlines what opting out means, and the factors clergy should carefully consider before making a decision.
What Opting Out Means
Federal law allows certain ministers, members of religious orders and Christian Science practitioners to apply for an exemption from Social Security taxes if they have a sincere religious objection to public insurance programs. The exemption requires submitting an IRS form under penalty of perjury affirming opposition to public insurance benefits such as retirement, disability or medical coverage.
United Methodist teachings have historically supported public insurance systems like Social Security and Medicare. The Church’s retirement and health programs are also designed with the expectation that clergy participate in Social Security.
Once approved, the decision to opt out is permanent and cannot be reversed.
Key Risks to Understand
Opting out of Social Security affects multiple areas of financial security across your lifetime.
Clergy who opt out are not eligible for Medicare benefits. Medicare Part A typically has no premium and serves as primary coverage for many retiree health plans. Without it, you may need to purchase alternative health coverage.
If You Are Exploring This Decision
Consider speaking with a financial professional familiar with clergy tax rules before making a decision. Wespath also provides educational resources to help clergy better understand how Social Security benefits work and how they fit into retirement planning.
If you have already opted out and want help evaluating additional savings or insurance needs, confidential consultations are available through EY Financial Planning Services at no additional cost for eligible participants.