Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
luann9111
New Member

Does clergy income that is subject to the self-employment tax include any IRA distribution income taken also?

 
1 Best answer

Accepted Solutions
Opus 17
Level 15

Does clergy income that is subject to the self-employment tax include any IRA distribution income taken also?

IRA distributions are never subject to SE tax.  You paid the social security or SE tax when you made the contributions, they aren't subject to FICA or SE tax on withdrawal.

By the way, a private IRA can't be used as a non-taxable clergy housing allowance in retirement.  For your retirement income to be a non-taxable housing allowance, it must come from a pension, 401(k), 403(b), or other qualified plan sponsored by your church or denomination.  If you roll over the money into a personal IRA it is no longer eligible for the housing allowance treatment.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

1 Reply
Opus 17
Level 15

Does clergy income that is subject to the self-employment tax include any IRA distribution income taken also?

IRA distributions are never subject to SE tax.  You paid the social security or SE tax when you made the contributions, they aren't subject to FICA or SE tax on withdrawal.

By the way, a private IRA can't be used as a non-taxable clergy housing allowance in retirement.  For your retirement income to be a non-taxable housing allowance, it must come from a pension, 401(k), 403(b), or other qualified plan sponsored by your church or denomination.  If you roll over the money into a personal IRA it is no longer eligible for the housing allowance treatment.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Dynamic AdsDynamic Ads
Privacy Settings
v