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Your employer (the church) may make contribution into your retirement plan - and that contribution is limited by 25% of your compensation for the tax year.That limit is separately applied to each tax year.For instance - if your wages are $40,000 - the employer may contribute up to $10,000
In additional - if there are several employees - employer's contributions generally must be the same for all employees.
In additional to employer's contribution - you as an employee may make your own elective contribution out of wages.These contributions are also limited on the annual basis and depends on the type of retirement plan your employer would establish.
Normally - tax exempt organization are using 403(b) Tax-Sheltered Annuity establishing retirement plans for employees - here is some additional information you may find helpful:
Publication 4483, 403(b) Tax-Sheltered Annuity for Sponsor
Publication 4482, 403(b) Tax-Sheltered Annuity for Participant
Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) for Employees of Public Schools and Certain Tax-Exempt Organizations
Contribution to the annuity in your name by your employer will be reported as your wages - and will be YOUR taxable income.
You will be ONLY able to defer from tax liability contribution within the annual limit.
That is 25% of your annual compensation or $53,000 - whatever is less.
Only current year compensation is considered for deferral - we may not count prior years.