Important Tax Information for Retirees

If you are receiving benefits from the old Aged Ministers’ Fund, you will not receive an IRS Form 1099 from Lincoln National Life Insurance Company or the Church of God International Office. They will not send you anything – just a check every month.

On the other hand, the Benefits Board sent you a Form 1099-R if you withdrew funds from your Ministers’ Retirement Plan account during the previous year. Your Form 1099-R reflects how much money you drew from the Benefits Board during the year. You should take the amount on the Form 1099 provided by the Benefits Board plus the amount that you receive from Lincoln National (or the Church of God International Office) and put that amount in Line 16A on the Form 1040 (your tax return). If you are a minister, you may then subtract out your housing cost and place the difference on Line 16 B of the Form 1040.

For example, let’s assume you are a minister and that you draw $200 a month from Lincoln National (or $2400 a year). In addition, the 1099-R you receive from the Benefits Board states that you drew $500 a month ($6000 a year) from the Benefits Board. On line 16A of your Form 1040, you would add the two accounts and show that you had pension and annuity income of $8400 (this example assumes you have no other pension income other than Social Security). If your housing costs for the year were $8400 or more, you would show $0 in Line 16B on the Form 1040. If your housing costs were $5000, assuming the same pension income, you would show $3400 on Line 16B of Form 1040.

About benefitsboard

Art Rhodes is the President and CEO of the Church of God Benefits Board, Inc. - the administrator of the Ministers' Retirement Plan and the Church Loan Fund, Inc. The corporate offices of the Benefits Board are in Cleveland, TN.
This entry was posted in Form 1099, Internal Revenue Service, Ministerial Housing Allowance, Ministers, Retirees, Retirement Distributions. Bookmark the permalink.

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