Question

by Bob
(Illinois )

I am employed by my church as the senior pastor. For nearly 30 years they have outright paid for my health insurance plan.

I am turning 65 and the church is willing to outright pay for my Medicare directly withdrawn from the churches savings account and paid directly to Medicare.

I have read nothing from the IRS, Medicare or Social Security that states that it is illegal. I am familiar with the Section 105 HRA reimbursement plan.,However the church board would rather keep it as it was and is with my current health insurance plan where they pay direct.

I have called the IRS and Medicare and Social Security and they all said that they have no issue with it. I have done some Google searches where they say contrary but they are not affiliated with Medicare or Social Security or the IRS.

Also as the church pays for my current health insurance I am not taxed, would this be the same scenario if they directly pay my Medicare?
Thank you so much!

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

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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