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Pastor retirement
Posted: Sat Sep 24, 2016 5:29 pm
by jnsilva
I would like to know if there is any way that a retirement fund could be set up for our pastor. We do not have the availability of establishing a 401 or retirement benefit at this time. Can contributions be made from membership to an account? Is there IRS requirements? If contributions are made by membership are they tax deductible? I would appreciate any assistance in this request.
Re: Pastor retirement
Posted: Sat Sep 24, 2016 5:55 pm
by NeilZ
jnsilva wrote:I would like to know if there is any way that a retirement fund could be set up for our pastor. We do not have the availability of establishing a 401 or retirement benefit at this time. Can contributions be made from membership to an account? Is there IRS requirements? If contributions are made by membership are they tax deductible? I would appreciate any assistance in this request.
My advice is to talk with a good tax accountant on this. The IRS says a donor cannot deduct any contributions that go directly to the support of an individual, and I suspect that a retirement account for a single individual falls under that rule.
If the church budgets for the retirement fund, and the funds come out of normal tithes and offerings, that's a different issue.
However, I am not an accountant, so my advice about talking with a tax accountant still holds.