Fredericksburg, VA -- (SBWIRE) -- 05/06/2013 -- Underhill Financial Advisors has teamed up with Griffin Capital Funding to provide no-cost, no-obligation financial planning services to independent pastors, their families and to church associates. The Pastor Protection Plan (PPP), as it is called, combines life insurance, disability income, and long-term care with complete retirement and estate planning. Together, the coverage provides comprehensive financial protection during working years and guarantees a lifetime income during retirement.

According to UFA President Jerry Burke, one of the PPP’s main benefits is that all principal and annual gains accrued are locked in and protected from future losses.

“This is a tax-advantaged retirement savings plan that builds up like a defined contribution account,” Burke said. “But it pays out a guaranteed lifetime income like a defined benefit pension.”

The greatest benefit, Burke added, is that the plan’s holder is protected from the greatest risk in retirement—outliving their assets. That is because a PPP guarantees income payments that cannot be reduced or ended prior to the holder’s death. There is also an available spousal benefit that will continue providing a lifetime income to the holder’s spouse after they die. Setting up a PPP is free, and contributions to the plan will immediately reduce one’s current taxable income.

For this year, the IRS has implemented the following contribution limits:
- Individual contribution limits are set at $51,000
- Churches may contribute up to an additional $33,000 on a minister’s or church employee’s behalf
- A $5,500 catch-up contribution is allowed for those age 50 or over
- An additional $3,000 catch-up contribution may be allowed for those with 15 or more years of service
- A saver’s tax credit of up to $2,000 may be available for those whose adjusted gross income is less than $57,000 (filing jointly)

“There are many benefits to this plan,” Burke said. “For instance, since ministers have ‘dual tax status’ their PPP contributions are exempt from Social Security, Medicare, self-employment and unemployment taxes. That is in addition to the fact that current IRS guidelines allow ministers and church employees to save up to $50,000 pre-tax dollars in their PPP with no increase in W-2 reported income. They avoid federal and state income tax there, in other words.”

Burke emphasized the fact that a PPP ensures a church will realize the maximum potential from its retirement savings contributions. Ministers’ future distributions, he stated, enjoy tax-favored status “because up to 100 percent of their retirement income may be designated as a clergy housing allowance.” That, he added, makes a PPP possibly tax-free for ministers “at both ends.”

For more information about UFA, visit www.ufalife.com, call 1-800-727-TERM (8376). For additional information on Griffin Capital Funding visit http://www.churchloan.net/.

About Underhill Financial Advisors
Established in 1974, Underhill Financial Advisors provide4s outstanding financial planning services to work toward its clients’ unique and specific needs. UFA offers assistance with term life quotes, retirement plans, life settlements and indexed annuities. Additionally, President Jerry Burk offers advice via Road to Retirement Radio, which can be heard Saturday mornings at 9:30 a.m. on WNTX (1350 AM and 96.5 FM).