Sponsors (22)
The bill gives ordained religious workers a clear, time-limited opportunity and administrative path to join Social Security — improving retirement and survivor coverage and planning flexibility — but it permanently removes the exemption once revoked, risks large retroactive tax bills for late opt-ins, and increases administrative and taxpayer costs.
Duly ordained ministers and religious practitioners who revoke their exemption will gain Social Security coverage, increasing their future monthly retirement benefits and lump-sum death benefits.
The bill creates a clear, time-limited administrative process and guidance from the IRS and SSA to opt into Social Security, reducing timing uncertainty and administrative errors for religious workers choosing coverage.
Individuals can prospectively choose whether their coverage begins the first or second taxable year after 2028, giving ministers planning flexibility about when Social Security and self-employment tax obligations start.
Ministers who revoke the exemption cannot later reapply, permanently removing the option to remain exempt from Social Security and self-employment taxes.
Ministers who revoke late in a year must pay the full past-year self-employment tax for that year, which can produce large, unexpected tax bills.
Notifying and enabling more religious workers to join Social Security will increase future Social Security benefit liabilities that are ultimately funded by taxpayers.
Based on analysis of 3 sections of legislative text.
Allows ordained ministers, members of religious orders, and Christian Science practitioners who previously claimed the Internal Revenue Code self-employment tax exemption to revoke that election by filing an application with the IRS by specified tax-return deadlines. The revocation can be made effective for taxable years beginning after December 31, 2028, is permanent (no re-election allowed), and affects Social Security (title II) insurance benefits for months/years in or after the year the revocation becomes effective. Requires the IRS, working with the Social Security Administration, to deliver a plan within 90 days to inform affected clergy about their ability to revoke the exemption and how to do so. No new funding or appropriations are specified in the text.
Introduced January 7, 2025 by Vince Fong · Last progress January 7, 2025