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Housing Allowance and 1099R Reporting


JOH

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Hi all-

We have a church plan where the previous custodian, when distributions were made for housing allowance, would put $0 in box 2a and mark "Taxable Amount not Determined".  Is this correct or should the taxable amount match the gross distribution and we should mark "Taxable Amount not Determined"?  Wondering how other custodians file their 1099R

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My sources tell me that a Housing Allowance is not reported by the Church to the IRS in any format.  Housing Allowance is subject to self-employment tax but not income tax.  Be sure there is a Board Resolution supporting the Housing Allowance.

IRS.gov/faqs/ ...ministers-compensation-housing-allowance.

Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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Hi Patricia-

This would be distributions from their 403(b) plans that would be used specifically for housing allowance (sorry, should have spelled that out better).  So we have to issue a 1099R because they are distributions from their retirement account.  I guess I need to know if anyone is putting a taxable amount that matches the gross distribution amount in box 2a or leaving it blank?

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