Withholding on 403b contributions?

[Guest Kenneth]

Should the church withhold social security and medicare on amounts contributed to a 403b plan?

[Guest Brent Rowell]

Assuming no risk of forfeiture:

Employer contributions NO

Employee Salary reduction YES

If risk of forfeiture FICA postponed until forfeiture lapses

(Did not mean to sound like an authority ... but I believe the information is correct)

------------------

Brent

[Guest dietpepsi]

This is an old post, but does anyone know if this applies to ministers as well as lay people? I received a question regarding the difference between a 403(b) plan for a minister and a 401(k) plan for a minister. It says contributions to a TSA account by a dual-status minster are not subject to social security and medicare. Is this true? Does the same apply to contributions to a 401(k) plan? Reference is to Rev. Rul. 68-395 and Rev. Rul. 65-208. The ultimate question being, is there an advantage to setting up a 403(b) plan instead of a 401(k) plan.

Thanks