End of Year Check-Up

Fidelity web workshopsAs 2022 winds down and the new year approaches, it’s a good time for pastors to review and plan ahead regarding matters like insurance, retirement, taxes, and other financial matters that impact your wallet. Here’s a checklist of items you may want to consider.

Budget – Review your budget for the past year and adjust for the coming year. If you don’t have a budget, start one, and be sure to include a fund for emergencies. Log in to your 403(b) account at netbenefits.fidelity.com for assistance with budgeting, retirement planning, and more.

Will, Trust, Power of Attorney – Review your will, trust, and health care power of attorney to assure they are current.

Health Insurance – Everyone needs health insurance. Review coverage for you and your family. P&B does not offer health insurance, but we have friends in the broader faith community, like GuideStone, who do. Retirees needing assistance with Medicare Advantage or Gap plans may explore selections at Via Benefits.

Health Spending Accounts – Check your Flexible Spending Account (FSA) balance or contribute to your Health Savings Account (HSA). Be sure to use any leftover FSA funds before the end of the year to avoid losing them.

Life and Disability Insurance – Accidents happen at every age. P&B provides a survivor benefit and LTD insurance for pastors whose churches contribute to the P&B Fund, but you may need more. We also offer supplemental life and LTD, as well as accidental death and dismemberment coverage at reasonable rates. Check out our Nazarene Supplemental Insurance Guide for details.

Other Insurance – Review auto and home insurance policies to determine if you have enough coverage, or if deductibles need to be adjusted.

Minister’s Housing Allowance – Review housing expenses and make sure you have allocated the proper amount for housing to avoid unnecessary taxation on salary. For assistance, see Memo 13 – The Minister’s Housing Allowance or Memo 6 – Housing Allowance in Retirement.

Retirement Contributions – Review with your church treasurer your contributions to the 403(b) Retirement Savings Plan to take advantage of available tax deductions and employer matching.

Beneficiary Designation – Every benefit program, from retirement to insurance, requires a beneficiary. Make sure your beneficiary listings are up-to-date.

403(b) Asset Allocation – Check the asset allocation in your Nazarene 403(b) account for diversification and risk. Your goals may have changed. You can receive assistance by phoning Fidelity at 866-629-2736.

Required Minimum Distribution (RMD) – If you are retired and past the age of 72, be sure to take the RMD from your Nazarene 403(b) account to avoid a penalty. A Fidelity rep can help with this. Use the phone number listed above.

Business Expense Reimbursement – Update your accountable reimbursement plan with your church to avoid taxes on expenses. Learn more with Memo 5 – Minimizing Income Taxes for Church Employees.

P&B Fund Allocation – Even partial payment by your church of the P&B Fund allocation means up to $30K in survivor benefits and $500 a month in long-term disability payments—at no cost to you. Make sure your church is contributing.

The representatives of Pensions and Benefits USA are available (weekdays from 8:00 A.M. to 4:30 P.M. CST) at 888-888-4656 or pensions@nazarene.org to assist with questions about ministerial financial matters. Be aware, if you have end of year business to conduct with P&B, contact us by December 5 to allow time for a response.