housing allowance in retirement

Submitted by Douglas Bauerband on Fri, 2023-12-15 15:22

This is what I read on Pastors Wallet:
The IRS says it’s still possible to claim a housing allowance even after you retire and stop receiving a paycheck. Unfortunately, there is no clear law or hard and fast rules about this.

Are there really no clear law or hard and fast rules on Ministers Housing allowance after retirement or is there?

Thank you
Douglas



Submitted by Alan - IRA critic on Fri, 2023-12-15 16:15

The IRS has not clarified this question, and various retirement consultants are over the place regarding retirement eligibility for the allowance. If the minister no longer receives any compensation for a year from the church, it seems that claiming the allowance is aggressive. Of course, there are many different arrangements for part time pay and the IRS seems happy to leave the allowance somewhat on the honor system, especially for typical ministers whose earnings are within the usual range. Probably only fully retired ministers no longer receiving church salaries would fall into the questionable qualification situation.

Submitted by Carol Flynn on Fri, 2023-12-15 16:24

The Methodist Church designated their pension distributions as Housing Allowance.  At least they did about 10 years ago when I corrected my minister’s father’s tax return.

Submitted by Douglas Bauerband on Fri, 2023-12-15 16:54

Merry Christmas

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