Torah Educators Networks serves limudei kodesh teachers in ways their schools cannot do independently.

Torah Educators Network’s first project is the creation of a unique “no taxes in, no taxes out” pension plan. 

All Orthodox day schools give parsonage to their rebbeim. An increasing number, including Bais Yaakovs, give parsonage to their female Judaic teachers as well.

The schools have pension plans (called 403b, like a 401k) as well. Though the teachers’ and schools’ contributions are made pre-tax, the benefits in retirement are taxable. 

Priests, ministers, imans, Conservative and Reform rabbis and members of the RCA have a much better deal. When they take out distributions from their pensions in retirement, they can take out funds tax free, as parsonage.

To do so, the funds have to be contributed into a specially set up pension plan for clergy, in keeping with the IRS Code 414e. Though every denomination of every religion has such a plan, there is none that is accessible to mechanchim and mechanchot.

Though there is a trade organization of these “Church Benefits Plans”, there are only a few experts in setting up these plans. Those plans are set up predominantly for clergy with congregations. However, in our world, there are many more “ministers of the gospel” (the IRS’ term for clergy who are entitled to take parsonage) who teach in yeshivas than there are rabbis of synagogues.

With life expectancy increasing rapidly, it is not unusual to live two decades or more as a retiree. The amount of money which a rebbe or a morah will save in taxes by taking parsonage in retirement is huge, and will enable their dollars to stretch for many more years.

We have begun working on other issues that will benefit Torah educators and their schools.


Torah Educators Network

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Torah Educators Network

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