Roth IRA Contributions Paid by Church to Pastor's Account

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Question:

I realize that an employer cannot makecontributions to a Roth IRA; only the owner (pastor) can. However, canthe church deduct an amount from the pastor's pay and make theIRA payment directly to the bank or company that administers the pastor'sRoth IRA account? (Realizing that the contribution has to be added to thePastor's gross income reportable on Form W-2.)

Answer:

Yes. This facilitation is permissible; essentially, it's no different than withholding from the pastor for any other "convenience" payment that is not a statutory / tax-free benefit. The same conditions apply relative to contributions to a Traditional IRA account on behalf of the pastor.