by Pastor Mike
(Texas)
Can a church board establish an account for a pastor where a portion of his salary is placed in an investment account, under a written agreement between the church and the pastor, that can be used as retirement housing allowance upon the pastor's retirement?
The account would be under the church's name and control as a trustee for the pastor.
I have been encouraged to do this instead of a traditional 403b...
2Comments
Have you checked Guidestone?
VVickey
Contact GuideStone Financial Services. They are familiar with churches, ministers, and retirement issues. Go to guidestoneretirement.org
No such thing as a "deferred housing allowance"
LLewis in NC
I conclude there is no such thing as a deferred housing allowance for retirement. Yearly housing allowances are set up and approved in the year prior to the tax year of use. Some ministers qualify for them while actively ministering and would still qualify for them when they become officially retired. You need more research on IRC 107. Your plan would not be giving the qualifying minister anything he/she doesn't already have.
You should still look into the idea of providing retirement income options for your retired minister however.
You should still look into the idea of providing retirement income options for your retired minister however.