THE PASTOR'S HOUSE
The Invaluable Housing Allowance^TM
Retirement Housing Allowance

"Nobody Ever Told Me..."

History:  Many, many years ago, I was giving a seminar to a group of clergy where I spoke about the benefits of the housing allowance.  I explained that clergy was entitled to a retirement housing allowance if set up properly and in a timely manner.

After my presentation, an elderly minister stood up with tears running unashamedly down his face; explained that he was ill and wanted to retire, but could not because he had no income other than his church income. To make matters worse, he was not aware of the annual tax filing requirement to declare the housing allowance in the annual income tax return, which would have contributed to his social security account via SECA. {IRS Form 1040SE}.

He said that nobody ever told him he could have a retirement housing allowance. His church could have awarded him a retirement housing allowance that not only would have been federal and state income tax-free but also self-employment tax-free when he actually retired.

In fact, I later learned if a pastor invested a portion of his/her ministry income in a 403(b) and designated a portion (or all) of their 403(b) as housing before they retired, it could be tax exempt upon withdrawal.

It's been my mission ever since, to share the benefits of a retirement housing allowance with as many pastors as possible. The Word says "We perish due to a lack of knowledge."

Be Blessed,

J. V. Kennedy-Jacobs, The Church Business Consultant