Are Internal Revenue Code 403(b) distributions (to aminister over the age of 59 ½) that are designated as housing allowance inexcess of housings costs subject to self-employment tax, or are they onlysubject to income tax as regular income?
Answer:
If a minister owns a home, the amount excluded from theminister’s gross income as a housing allowance is limited to the least of thefollowing: (a) the amount actually used to provide a home, (b) the amountofficially designated as a housing allowance, or c) the fair rental value ofthe home.
As with virtually all retirement plan distributions, noself-employment tax is due on 403(b) distributions.
The members of my Federal Taxation I class at MaranathaBaptist Bible College in Watertown, Wisconsin have taken on the challenge ofstudy and research to answer posted questions. Mariya Bondarenko of Minnesota getscredit for this one.
Hiç yorum yok:
Yorum Gönder