An investment advisor "once heard regarding 403(b) plans that distributions from such plans could not qualify for the housing allowance." Later, he "came across several tax sources that say 403(b)(9) distributions may qualify for housing allowance [designation] (the "nine" apparently being the distinguishing characteristic)."
Can 403(b) distributions qualify for housing designation?
Distributions from 403(b) plans qualify for housing designation. I point readers of this blog to my posting of October 28, 2009:
Retired Minister Continued Support from His Congregation
How does a 403(b)(9) differ from traditional 403(b) plans?
Section 403(b)(1) describes TSAs (also known as 403(b) plans) as annuities (Tax-Sheltered Annuities). Section 403(b)(9)(a)(i) clarifies that “a retirement income account shall be treated as an annuity contract described in [section 403(b)]." Section 9 simply indicates that annuities are not the only form of permissible 403(b) plan investments.