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Guest brstokes
Posted

With many church plans looking to move to a 401(k) plan, what thoughts does anyone have regarding parsonage allowance rules under 401(k) plans?

Guest newlifeca
Posted

That's a good question. I know that a "Church Plan" can designate a portion (or all) of the distributions as a housing allowance - if the person is eligible. I am not sure how this works (or if it works) with a 401k plan. I'm most familiar with plans organized under 403(B)(9) making this provision. I'll look forward to how others will answer this.

Blessings - Mike

Posted

You might want to click on this link:

http://benefitslink.com/boards/index.php?showtopic=11921

or

http://benefitslink.com/boards/index.php?showtopic=2055

Although these refer specifically to 403(b) plans, the rules should be the same for 401(k) plans.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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