Unused Insurance Line item balance

by church admin

This year Pastor's insurance cost was lower than the amount budgeted from his package. At the end of the year do we:

1. let it expire, that budget balance to remain unpaid and so is "lost" as it represents the approved budgeted amount voted on by the church.
2. add the balance to his salary where it will become subject to tax.
3. apply it to his retirement as a one time payment since the insurance and retirement are both pretax categories.
4. something else?

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