403(b)/401(k) take money out: for pastors

How do pastors take out money?

The Minister’s Housing Allowance is one of the greatest tax benefits available to ordained, licensed, or commissioned ministers and comes from Section 107 of the Internal Revenue Code. 

When an ordained, licensed, or commissioned minister receives a portion of their compensation as housing allowance, that portion is excluded from gross income and, therefore, not subject to federal income tax.

This can represent substantial tax savings for the minister. 

Further, when an ordained, licensed, or commissioned person retires, a portion of their 403(b)(9) retirement plan distribution can be received as housing allowance, providing additional tax savings in retirement.

Envoy has extensive experience with housing allowance for ministers and is committed to protecting this important benefit. We have developed tools to make it easy for ministers to maintain their housing allowance, even if they change employers. Using specially earmarked rollover accounts that protect the 403(b)(9) money source and other tools, Envoy works with ministers to preserve the housing allowance benefit during active ministry years and in retirement.

Click any of the following links to learn more about distributions received as Housing Allowance or request a distribution: