4 Valuable Tips to Help You Navigate Tax Season

It’s that time of year again. Tax season is upon us and we want to make sure you have the resources you need to successfully file your taxes.*

1. Important tax dates that you should take note of

   1. February 12th marks the beginning of tax season

   2. The first business day in March usually marks the beginning of refund issuance

   3. April 15th is the deadline

   4. You can request an extension to October 15th

2. Tax tips for IRA holders

   1. You can make contributions that count toward the 2020 calendar year up until April 15th. For example, if you received your second stimulus check last month, you may want to consider putting that money into your IRA and counting it toward 2020 contributions.

   2. We recommend that you look at your account statement to confirm your prior and current year IRA contributions. In May, financial institutions will begin sending out Form-5498 which can be used as the official confirmation of your prior year IRA contributions.

3. Tax tips for pastors

   1. If you receive a housing allowance, do not claim that on your taxes! This is tax-exempt and is a great way for your church to bless you. 

   2. Additionally, if you have a 403(b)9 through your church, you can specify a certain amount equal to your housing allowance to contribute tax-deferred. Then, in retirement, if your church issues an official letter that you may withdraw a housing allowance from your retirement fund, you can do so, untaxed. This strategy can save you thousands in tax payments over the decades.

4. Tax tips for retirees

   1. 1099R forms must be filed for each fund or organization from which you have taken a distribution. This includes:

      1. Profit-sharing or retirement plans

      2. Any individual retirement arrangements (IRAs)

      3. Annuities, pensions, insurance contracts, survivor income benefit plans

      4. Permanent and total disability payments under life insurance contracts

      5. Charitable gift annuities, etc

   2. For more information on 1099Rs, click HERE.

As always, we recommend speaking with a Certified Professional Accountant for details, instructions, or additional help while filing your taxes. If you have questions about your investments or need a form that you cannot find, reach out to our Client Services Team by email or phone (during normal business hours) at (888) 879-1376.

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* Envoy does not offer legal or tax advice and encourages that you consult with a lawyer and/or professional tax advisor for personalized tax advice.

A Letter of Encouragement from Those in Ministry

As the Envoy TPA (Third-Party Administrator) Relationship Coordinator, I get the fulfilling opportunity to connect with Pastors, CEOs, Executives, Executive Pastors, and Church Administrators from all over the country.

One of the most encouraging things I’ve repeatedly heard is that churches and organizations, despite the difficult year we’ve all had, are doing well. In fact, churches and organizations are doing VERY well.

I’ve heard story after story of how God has provided for churches and organizations and has allowed them to continue to reach people.

I spoke with one plan representative from a church that told me their giving and tithes and offerings were significantly down which, naturally, caused them to panic. They put in a request for the PPP relief loan, which helped steady the ship. A few months later the giving skyrocketed.

It turns out that people from the church were withholding their contributions to see how their job situation was going to pan out. Once they realized they were going to be ok, they sent in a few months’ worth of tithes and offerings. They had enough contributions come in that they were not only able to make their budget for the year, but they were also able to pay off the PPP loan right away.

I spoke with another church whose attendance was down by 50%. However, their tithes and offerings remained the same so that they did not have to lay off any employees. Not only that, but their online attendance was up 170%! Their church grew in influence and reach.

These are a few of the encouraging stories I have had the chance to hear. God has not only preserved His church, but He has allowed His church to grow, flourish, and reach more people during these difficult times.

God cares about your church, organization, congregants, clients, staff, and people. He has been faithful, and He will remain faithful. The Apostle Paul wrote in 2 Timothy 2:13 “If we are faithfulness, He remains faithful, for He cannot deny Himself.”  

Know that we are praying for you and believing that 2021 will be the best year yet!

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A little bit more about Paul…

My main responsibility as the TPA Relationship Coordinator is to ensure that you have everything you need to optimize your Retirement Plan with Envoy.

I am here to serve you in any way that I can. If you have questions (or simply need assistance) with your Retirement Plan, I would love to connect with you!

Ready to chat? You can contact me here.