Converge Retirement Plan wishes to highlight a feature of our plan that provides substantial tax savings for many of our participants.
The housing allowance is for clergy participants. IRS regulations allow income from denominational retirement plans to be designated as housing allowance. The Retirement Plan designates 100% of distributions from both the Pension and the Defined contribution Plan as housing allowance. The amount of housing expense you can use to offset the housing allowance is the lesser of:
- 100% of your distributions
- Your actual expenses
- The fair market rental value of your home plus utilities
If you currently receive housing allowance as part of your compensation, you are already accustomed to tracking your housing expenses. Secular retirement companies cannot designate your distributions as housing allowance. This means that Converge Retirement provides significant potential tax savings to you compared to secular retirement options.
We recognize that churches have many options regarding staff retirement benefits. Please consider the advantages of providing housing allowance treatment of future benefits for your qualified employees. Call 877.482.6882 to speak with Ed Shannon, Retirement Specialist, if you have further questions about this valuable benefit. We consider it a privilege to serve those who serve vocationally in ministry and are honored to work on your behalf.