HSA for Pastors

by Robert Batey
(Kalamazoo, MI)

We had our annual membership meeting to discuss the budget. Our church was in good shape last year, but this year the board said that we needed to make some cuts to keep things going. I noticed in our budget last year no money was in the budget for an HSA, but they contributed $18,000 into one anyway, this about how much they were wanting to cut, but did not. Why would our pastors need an HSA. They decided to make cuts in missions and ministry organizations. Wouldn't the church benefit more by paying a deductible for the pastors if needed, rather than putting money into an HSA?
Thank You,
Robert Batey

Comments for HSA for Pastors

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HSA
by: Anonymous

If your pastor has an HSA (a high deductible health savings plan", then he is unable to have other insurance also. You have to have one or the other. An employer putting money into his HSA is not taxable to the pastor nor does the employer have to pay company taxes on it. He can use this to pay medical expenses and also use it for retirement if he doesn't deplete the fund. Verify this please, but any benefit you give your pastor where it doesn't have to come out of his income is good.
HSA??
by: Anonymous in NC

If this is a Health Savings Account and it hasn't been established before this budget year and the pastor still has an adequate Hospitalization Plan, then there really wouldn't need to be one established this year. But of course that is a matter of opinion--my opinion, and I do not even have a vote on your administrative board. I wish the church good luck with the decision.

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