We have a church in the area that pays the pastor using what they call a "rabbi account".
On a monthly basis the church puts a certain amount of funds in a checking account and the pastor draws funds from that account for salary, expenses, etc. The account is totally under his control. There is no required documentation of how the funds are used.
I am been researching "rabbi account" and always came to information about Housing Allowances.
So based on this article, is this truly what it is all about, noting the total salary as part of the housing allowance?
Thanks in advance for any response and for the great and timely article. God bless you.
2Comments
TurtleSpirit
DDebbie
Could this be a benevolence fund of some sort? If so, would an account like that be taxable income for the minister?
Taxable Income
VVickey
I have never heard of a Rabbi account, so not sure exactly what it is. However, unless part or all of the Pastor's wages were designated (legally) ahead of time as a housing allowance, all funds deposited into that account would be considered taxable income for the pastor.