Pastor "donates" his own 401k(k) to a church to build him a "parsonage" which will be reconveyed back to him when he leaves the church.

Can a pastor "donate" his own 401(k) or 403(b) assets to the church, thereby, avoiding the taxes on the withdrawal of the funds then get the church to build and own his new house? The "parsonage" will be owned by the church with the understanding that it will be reconveyed back to the pastor at the time he leaves the church or wishes to sell the home.

Comments for Pastor "donates" his own 401k(k) to a church to build him a "parsonage" which will be reconveyed back to him when he leaves the church.

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Aug 14, 2022
CONSULT a Knowledgeable Attorney NOW!
by: Vickey

Oh my! There are all kinds of issues with this setup!

Please consult a knowledgable attorney NOW!

I can highly recommend Frank Sommerville and Mike Batts.

Aug 15, 2022
One word
by: CPA

No

Aug 19, 2022
IThess 5:22 NEW
by: MarciaK

NOOOOO!!! Oh please don't do this!! Consult an attorney, and I would seriously question anyone who suggested such a thing!!! There are red flags everywhere with this!!!

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Join in and write your own page! It's easy to do. How? Simply click here to return to Earmarked Contributions.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



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