401K donation earmarked to pastor

by John Ward
(Paradise, Tx United States)

An individual is having his 401k make distributions to a church in order to take a charitable contribution but not pay income tax on the distribution.

In addition he has asked that the distribution be given to the pastor and youth pastor equally.

How does the church handle the distribution to the pastor and youth pastor. Is it reportable and taxable to the pastor and youth pastor.

Comments for 401K donation earmarked to pastor

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Aug 10, 2019
No Charitable Contribution for Individuals
by: Vickey


He cannot do that.

The minute he designates it to an individual(s)...it is no longer considered a tax deductible charitable contribution.

Aug 14, 2019
You can't designate monies given to an individual as "charitable"
by: Marcia

He can't do that and still get a tax deduction for it. He could donate it specifically to the Youth fund or to the Missions fund, but he can not give that money to individuals and call it a "charitable donation"

That money given to the pastor is taxable income at that point if I am not mistaken. His employer should be having issue with that as well unless the check is made out to the Church then he is requesting that the church then distribute those funds to the Pastor after you deposit it.

In the case of the latter, you have every right and legal responsibility to say NO!

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