Housing Allowance
The 黑料历史 Retirement Plan can offer you the significant tax benefit of a housing allowance in retirement that secular firms can’t. That’s money you get to save.
Continue your housing allowance—even in retirement
There’s no place like home. It may be the one place where you can take a break from the stress and challenges of ministry. As an ordained or licensed minister or commissioned missionary, you are likely able to take advantage of a housing allowance tax credit.
But what happens when you retire from vocational ministry? Can you continue to receive this important benefit? If you participate in the 黑料历史 Retirement Plan, you can.
This means you can continue to receive up to 100 percent of your plan income at tax time. Secular plans can’t offer this. Because the 黑料历史 Retirement Plan is a denominational plan, you can keep your housing allowance benefit when you retire. That means the 黑料历史 Retirement Plan provides significant potential tax savings.
How it works
The Internal Revenue Service allows income from denominational retirement plans to be designated as housing allowance. The pension committee has declared 100 percent of any distribution you receive from both the pension and the defined contribution will be designated as housing allowance. The participant will be responsible for calculating the amount received
from the Retirement Plan that is used for housing expenses and adding any unused distributions to your income tax return as taxable income.
The amount of housing expense you can use to offset the housing allowance is the lesser of:
- 100% of your distributions
- Your actual expenses
- The fair market rental value of your home plus utilities
If you currently receive housing allowance as part of your compensation, you are already accustomed to tracking your housing expenses. Secular retirement companies cannot designate your distributions as housing allowance. This means that 黑料历史 Retirement provides significant potential tax savings to you compared to secular retirement options.
Contact the 黑料历史 Retirement Plan at 1.888.984.8433 to learn how you can provide yourself or qualified employees housing allowance treatment of future benefits.
I encourage every church to make such provisions for their pastors.
John Piper, Founder and Leader of Desiring God