Generally, the limit for pension plans is $15,500 for 2007 and 2008. Housing allowance is not included. There are complicated rules for those who wish to deposit more. Certain types of employees and types of accounts have different limits. Some limits increase annually.

Rule of thumb: In order to have an adequate retirement income, a minister usually needs to set aside at least 14% of salary (including housing) as well as pay Social Security taxes!

No, but small deposits usually grow more slowly than larger ones due to higher fees and account charges. Few ever retire and say, "I saved too much!"

The church fills out a one page acount application form. Each employee whill have several forms to sign allowing the financial planner, the church, and the fund custodian, to work on their behalf.

Future income depends on how much is invested, the number of years and the growth of the account over time. Those who sow little reap little. In general, we aim to match or exceed the stock market when measured over three, five, and ten year periods. Detailed projections can be drawn up to illustrate possible returns for each participant based on long-term average expected returns until retirement.

Here is a short, nutshell description of several common retirement plans allowed by Congress. Seek professional counsel to determine the best mix of plans.

• Standard IRA's

  Best for those earning less than $62,000 with up to $4,000 to invest annually. Most common use is in the rollover form from a company 401K plan.
  Advantages: Current tax deduction and personal control.
  Disadvantages: All withdrawals including growth are subject to tax.

• ROTH IRA's

  Best for anyone with savings to invest for at least five years.
  Advantages: Earnings are never taxed. Cntributions may be withdrawn, penalty free after five years if you are over age 59 1/2.
  Disadvantages: No current tax deduction.

• 401K's

  Best for those with larger employers offering a match to employee contributions.
  Advantages: Contributions are not taxable except for FICA/Medicare.
  Disadvantages: All withdrawals including growth are subject to tax.

• Keogh Plans

  These are designed for self-employed persons with incoem consistenly greater than their cost of living.
  Advantages: Much higher limits than IRA's.
  Disadvantages: All withdrawals are subject to tax.

• SEP-IRA's

  Best for consistenly profitable small businesses.
  Advantages: Allows smaller employers to make substantial retirement contributions.
  Disadvantages: Contribution rates are fixed for all employees. Al withdrawals including growth are subject to tax.

• SIMPLE-IRA's

  Best for smaller employers who want to give employees flexibility and limit their own contributions.
  Advantages: Allows up to $10,500 employee deferral in 2007 and 2008 with the employer matching up to 3% of employee's wages.
  Disadvantages: All withdrawals are subject to tax.

• 403B Plans

  Designed for tax-exempt organizations such as schools, churches, and clergy.
  Advantages: All contributions are pre-tax for clergy. For others, same as 401K plans. Special rules for churches and clegy make these plans very attractive for qualifying employers. Cklergy withdrawals are deemed housing allowance to the extent used.
  Disadvantages: All withdrawals including growth are subject to tax except as noted above.

• Tax-Deferred Variable Annuities

  Best for those who have investment income to shelter, have a long-term horizon, can afford to lock up their investment for at least 10 years and wish more security.
  Advantages: Greater security than mutual fund or IRA investments depending on policy terms.
  Disadvantages: Significant penalties for early cancellation of contract. All capital gains are taxed at the taxpayer's highest tax rate when withdrawn.

• Whole Life Insurance

  Best for those who desire or need life insurance that will be in force the rest of their lives no matter what happens.
  Advantages: The accumulated value may be borrowed or cashed otu. In addition, unless cancelled, there will be a death benefit. All benefits are tax-free.
  Disadvantages: It is not to be confused with a savings or retirement plan except for expenses after death.

The following plans are subject to complex rules and regulations:

Defined Benefit
Defined Contribution
Money Purchase
Profit-sharing
ESOP (Employeed Stock Ownership Plan)
Cash Balance
Non-qualified Deferred Compensation
Rabbi Trust
Secular Trust
Stock Options
Split-dollar Life Insurance