Accounting, Payroll & Pension Issues/403b employer contribution

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Expert: - 2/7/2012


Question
The accountant for our church has employer contribution to my 403b plan on the balance sheet as church asset. Is this correct? I thought once the funds were transferred to the financial institution it becomes my asset.

Answer
Hi Christopher,

You are correct.  403(b) contributions made to your account represent your assets and not the employer's assets.

For employer's contributions, the transfers might not be immediate.  You should inquire as to the dates for transfers and follow-up with your fund custodian if necessary.

Wish you the best.

Regards,

Paul Sid

Accounting, Payroll & Pension Issues

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Paul Sid, CPA CFA

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I am a CPA and CFA with more than 20 years of assisting others to address a wide variety of tax and financial issues, including: (a) tax and timing for conversion of various retirement vehicles including 401(k), traditional IRA, and Roth IRA; (b) starting date considerations for social security benefits and related tax liabilities; (c) computation of book and tax basis, gains and losses on investments, §1031 exchanges; (d) tax benefits and deductions on principal residence, vacation homes, and investment properties; (e) acquisitions of business properties, computation of bonus depreciation, and MACRS depreciation; (f) tax as related to various martial issues, including dependences, noncitizen spouses, and divorce settlement; (g) review of college funding options and tax attributes; (h) tax computation and investment considerations for fixed and variable annuities; (i) tax considerations relating to gifting by parents and grandparents; (j) tax on employee benefits programs including retirement plans, health insurance, and other benefits; (k) tax on inherited assets including assets, insurance, and other assets.

Paul Sid, CPA CFA
FinancialEdge.net

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I have over 20 years of financial, accounting, and tax experience in working with individuals and fortune 500 companies.

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BS Accounting, CPA, CFA

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