While your retirement distributions are typically taxed at the same rate as your ordinary income, special tax rules apply to housing for retired clergy.
Specifically, one of the advantages of a church plan, like the JRB Retirement Savings Plan, is the opportunity for retired clergy to claim a parsonage allowance during retirement. Under this benefit, distributions that cover a housing allowance are tax-free.
The parsonage allowance is not available through other types of retirement savings accounts, such as an IRA. Rather, a parsonage allowance only is available on distributions from a denominational retirement plan, such as the JRB Retirement Plan.
The rules governing the amount that can be claimed as a parsonage allowance in retirement are the same as those that apply for actively employed clergy. To learn more click here.