Deferred Housing Allowance

by Pastor Mike

Can a church board establish an account for a pastor where a portion of his salary is placed in an investment account, under a written agreement between the church and the pastor, that can be used as retirement housing allowance upon the pastor's retirement?

The account would be under the church's name and control as a trustee for the pastor.

I have been encouraged to do this instead of a traditional 403b...

Comments for Deferred Housing Allowance

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Jan 29, 2015
No such thing as a "deferred housing allowance"
by: Lewis in NC

I conclude there is no such thing as a deferred housing allowance for retirement. Yearly housing allowances are set up and approved in the year prior to the tax year of use. Some ministers qualify for them while actively ministering and would still qualify for them when they become officially retired. You need more research on IRC 107. Your plan would not be giving the qualifying minister anything he/she doesn't already have.

You should still look into the idea of providing retirement income options for your retired minister however.

Jan 29, 2015
Have you checked Guidestone?
by: Vickey

Contact GuideStone Financial Services. They are familiar with churches, ministers, and retirement issues. Go to

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Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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