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Form W-2 Reporting for Roth Contributions in a 403(b) plan

Question:

How does a church report designated Roth contributions on its pastor's Form W-2?

Answer:

According to the IRS instructions for 2008 Form W-2, Roth contributions withheld from the pastor's pay do not reduce Box 1--Wages, tips, other compensation. The amount of the contributions should be recorded in Box 12, using code BB. Also, the Retirement Plan option in Box 13 should be checked.

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Housing Allowance when Bartering for Rent Payments

Question:

If a minister rents his principal residence, but he performs services (mowing the lawn, repairing the roof, etc.) in lieu of rent, can he still qualify the rent amount for a housing allowance tax benefit?

Answer:

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