Can a pastor receive a medical allowance?

If a pastor was on a church policy being paid 100% by the church and then married and was added to his wife's policy, can or should the church pay him the premium being saved as a medical allowance?

2Comments

Taxable Income

VVickey

There is a firestorm of controversy going on presently regarding this very issue.

Before Obamacare became law you could have done this under a qualified HRA, but now it is taxable income.

That is not saying you cannot give him a "medical allowance" just be aware that the amount you give him will have to be included in box 1 of his W-2.

medical allowance?

LLewis in NC

It would be very nice for the church not to lower the pastor's benefits if it can continue to afford this expense in the budget.