JustMe

We have a church that is not controlling over a school (of the same name and denomination) and the church's ministers teach in the school. The school wants to allow the ministers to contribute to the school's 403(b) plan and allow them to designate distributions as ministerial housing allowance. If the ministers' work qualifies as ministerial work for the school, can the school (and not the church) allow ministerial housing allowance designation or must the allowance come out of a church plan only?

Anyone else have any opinions on this situation?

Jpod, thank you for your quick response. This plan is setup so that the employee must be employed on the date in which the payment is made, so that is when the SROF is and we are good. However, some employers want only to require that the employee be employed on the last day of the year in which the performance is met. So then the bonus is not forfeited before the compensation committee meets. So I am not sure what the comp. committee could do to create the SROF.

Concerning the short-term deferral rule, if a performance goal is required to be reviewed by the compensation committee and the compensation committee does not meet until the year following the year in which the performance goal is met, would the date of the committee compensation meeting be considered a SROF? For example - the EE meets the performance goal on 7/15/15, the compensation committee meets on 3/25/16. In order to satisfy the short-term deferral rule, must the payment be made on 3/15/16 or could it be paid on 3/15/17?