Can money in a 403(b) be claimed as a housing allowance in retirement for someone living in a life care facility where the cost includes meals and medical care? How should that situation be handled?
Video: Q&A: Do Life Care Facilities Qualify for the Housing Allowance?
2 Responses
Rick
January 10, 2022RE: Housing Allowance for a Pastor at a Life Care Facility:
Good question and great answer; might mention for the pastor to keep up with any portion of the monthly payment that is allocated to ‘medical’. That would be included for their Itemized Deductions. For most, that and the other Itemized Deductions would probably NOT exceed the Standard Deduction, but you never know.
Amy
January 11, 2022That’s right, Rick. Medical expenses that exceed a certain threshold of income can be deducted as itemized deductions.