Parsonage For Retired Clergy
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.