A Word from the CEO

The parsonage — or housing — allowance provides an important tax benefit for clergy. Understanding and calculating the parsonage allowance correctly, however, can be complex.

To make it easier for rabbis and cantors to claim the housing allowance properly, this issue of the Financial Pulse begins a three-part series on the topic. This month we look at the dual tax status of clergy and its impact on the housing allowance. Part 2 addresses calculating the housing allowance during one's working years; Part 3 concludes the series by exploring how clergy can get the most out of the parsonage allowance in retirement. We look forward to your comments on this series.

Last month the Trustees of Social Security and Medicare issued their annual report on the financial status of these programs. Little has changed from last year; Social Security trust funds are expected to be depleted within a decade. At that point, the Social Security Trustees expect the program to provide only about 77% of scheduled benefits. Read our article for additional details.

If you have questions about the parsonage allowance, the Social Security Trustees' report or your long-term financial plan, please contact us via email or call us at 888-JRB-FREE (572-3733).

Hag Shavuot Sameah and Enjoy the Memorial Day Weekend,