Level 9

Retirement tax questions

SPECIFIC ANSWER TO @ james  SPECIFIC QUESTION:
 - Retired Clergy Pension Benefit Taxable if No longer retain connection to religious organization?

The IRS allows a retired member of clergy, who retains a relationship with her/his church, to exclude a designated Housing Allowance from the proceeds reported on the Form 1099-R you would receive.  There is a long explanatory narrative I wrote some time ago and have kept up to date, and you can find it here:

https://ttlc.intuit.com/questions/3168030-my-pension-has-been-designated-as-tax-exempt-housing-allow...

However, since it would seem you no longer have a continuing relationship such that the religious organization would offer you the statement of the amount of Housing Allowance to be excluded (required), you may not be eligible for the exclusion.

In any case, whether or not you can reduce the reported taxable income received from the distribution from the §403(b) Savings Plan, the distribution must be reported as Retirement/Pension income.



Scruffy Curmudgeon
PFFM, IAFF, Locals 718 & 30, retired firefighter/medic; university instructor
USAR 64-67 AIS/ASA MOS 9301 O3
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