Ask the Experts!
The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers. Here’s the question of the day.
Question: My client is a retired minister. He has a 403(b) account that we are considering rolling over to an IRA. Is there any compelling tax reason to leave the money in a 403(b) account?
Answer: There might be.
Unlike with IRA distributions, a retired minister can use distributions from his 403b plan tax-free as part of a housing allowance. There are certain requirements for the minister to be eligible for such tax-free distributions. For a full explanation, see this article:
That would be a potential advantage to him to leaving the money in a 403(b) plan instead of rolling it over to an IRA.
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