The Clergy Act was signed into law on October 20, 2026, giving eligible ministers who previously opted out of Social Security and Medicare a limited opportunity to opt back in.
In an April 27, 2026 session, the U.S. House of Representatives passed the Clergy Act by a vote of 350–5. The U.S. Senate passed the bill by unanimous consent on September 30, and the Church Alliance announced its passage on October 1. Read the Church Alliance’s statement.
Under the new law, eligible ministers can apply to the IRS to revoke their exemption. For calendar-year filers, the change can take effect in either the 2029 or 2030 tax year. Ministers who opt back in will pay Social Security and Medicare taxes on their covered ministerial earnings and may qualify for benefits if they meet the applicable requirements. The decision to revoke the exemption is permanent. Read the Clergy Act.
Richland Ave Financial worked with the Church Alliance to support the legislation and spoke with members of Congress and their staff about moving the bill forward. We’re grateful to the lawmakers who worked across party lines to pass the Clergy Act and to the Church Alliance for its years of advocacy on behalf of clergy.
If you’d like to discuss what the Clergy Act could mean for your retirement planning, please contact Richland Ave Financial.
