What Happened?
If you are a member of the clergy who once opted out of Social Security, a new law gives you a limited-time chance to rejoin the program and start building retirement and Medicare benefits. The Clergy Act, signed into law Oct. 20, opens a revocation window running until approximately April 15, 2031, according to a Legis1 review of a Congressional Research Service (CRS) report.
Ministers, members of religious orders who have not taken a vow of poverty, Christian Science practitioners, and members of recognized religious sects are automatically covered by Social Security as self-employed workers, but may apply for a permanent exemption from self-employment taxes on grounds of conscience or religious principle. Once granted, that exemption is generally irrevocable, and clergy who take it early in their careers may face challenges preparing for retirement later in life.
Why Does it Matter to Me?
The Congressional Budget Office (CBO) estimates that approximately 3,000 clergy members would reverse their exemptions in 2029 or 2030, the two years when a revocation can take effect.
Clergy who revoke their exemption will pay self-employment taxes on ministerial earnings for the rest of their careers; in return, they may qualify for Social Security retirement benefits and Medicare, though they generally must accumulate 40 qualifying credits to receive retired-worker benefits.
A separate law, the Social Security Fairness Act of 2023 (P.L. 118-273), repealed the Windfall Elimination Provision and Government Pension Offset for benefits payable after December 2023, removing a reduction that had applied to some clergy who elected coverage from 1984 through 2023.
Both Sides, Now
The CBO projects the Clergy Act will bring in $84 million in additional payroll taxes over 2026–2036, while adding only $2 million in combined Social Security and Medicare benefit outlays over the same period. Of that $84 million, approximately $68 million comes from Social Security taxes and approximately $16 million from Medicare taxes.
The Clergy Act directs the IRS to develop a plan to notify eligible clergy of the revocation opportunity. No formal opposition letters, lawsuits, or advocacy campaigns against the bill have been identified in the public record.
What Happens Next?
The window to file a revocation stays open until approximately April 15, 2031, and revocations can take effect in either tax year 2029 or 2030. Congress has created four such revocation windows since 1977; the current window, at roughly 54 months, is about 26 months longer than the 1999 window, the next longest of the prior three.
The new law directs the IRS to develop a plan to notify eligible clergy of the revocation opportunity, subject to the agency's implementation process.
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