MBA 403(b)
Housing Allowance
Beginning with the 2002 tax year, Congress enacted into law the Clergy Housing Allowance Clarification Act of 2002. The maximum housing allowance exemption in any tax year is the LESSER of:
- Your actual expenditures,
- The fair rental value of your home, as furnished, plus utilities, or
- The amount distributed by your retirement plan to you and declared in advance as your housing allowance.
NOTE: When filing an amendment to your housing allowance, the total amount is applicable from the date MBA receives and approves the form. Therefore, that amended amount will be added to your housing allowance as previously filed. (Be careful to observe the Fair Rental Value Limit.)
By IRS ruling, surviving spouses may not declare housing on distributions from the retirement account of their deceased credentialed minister spouse.
Housing Allowances for Surviving Spouses of Deceased Ministers
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