How to Opt Out of Social Security

To opt out of social security is available ONLY if the minister is opposed to the receiving of social security benefits because of their religious beliefs. Opposition to the payment of the self-employment tax is not one of the conditions that must be met before a minister can opt out of social security using form 4361. 

Conditions to Opt Out of Social Security using Form 4361:

1) Must be an ordained, commissioned, or licensed by a church.

2) The church or denomination must be a tax-exempt religious organization.

3) Must be opposed to receiving social security benefits on the basis of their religious principles or because they are conscientiously oppose to it.

4) Must file an IRS Form 4361.

5) Must file the 4361 by the due date of the federal tax return for the second year in which a minister has net earnings of $400 or more from self-employment. Any part or all of the self-employment must be from services performed in the exercise of their ministry.

6) Must inform their church or denomination that they are opposed to social security coverage for their services performed in the exercise of their ministry.

7) Must sign and return the IRS “verification” statement within 90 days of receiving it. This “verification” statement certifies that they are requesting an exemption based on the grounds listed in the statement. No form 4361 application for exemption will be approved unless the IRS “has verified that the individual applying for the exemption is aware of the grounds on which the individual may receive an exemption….and that the individual seeks an exemption on such grounds.”

Important: an exemption is effective ONLY when the minister receives back one of the three 4361 forms (it is file in triplicate) from the IRS marked “approved”.

I have received several inquiries on whether or not an individual minister can still collect SS benefits even if they had opt out of social security years ago, so I would like to answer this concern here instead of individually =) 

First of all, I always recommend you call your local SS office and set up an appointment with a SS benefit specialist. I am not a SS expert and the answer depends on individual circumstances; however, there are a few things that may help to know before you make that call.

1) Even though you have opted out of social security by filing a form 4361 and was approved...that exemption does not apply to "non-ministerial" wages, so if you have earned at least 40 credits, you will be entitled to benefits.

2) If you don't have enough credits and have opted. out, you can still work a secular job and earn those credits.

There are some pretty good articles that may help, but please don't take everything you read at face value! Contact a SS benefit expert and discuss your particular case with them. Here is a few of those articles that may help:

WHAT PASTORS NEED TO KNOW ABOUT SOCIAL SECURITY EVEN IF THEY’VE OPTED OUT

4 Reasons Why Ministers Should Opt-Out of Social Security

CAN PASTORS OPT BACK INTO SOCIAL SECURITY?

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The comments above are for general information purposes only and do not constitute legal or other professional advice on any subject matter. See full disclaimer.