Voluntary Employees’ Beneficiary Associations (VEBAs) are a type of welfare benefit plan which have been in existence since 1928 and gained more attention in 1986, when Congress allowed multiple employers to form a VEBA.
VEBAs were created to fund non-retirement benefits, such as life insurance, sick pay, medical reimbursements, supplemental unemployment pay, severance pay, long-term insurance, educational benefits, and vacation pay.
Hitesman & Wold attorneys are at the forefront of finding solutions that couple VEBAs with relatively new health and welfare plans including health reimbursement arrangements (HRAs).
Our attorneys assist private and public sector clients in complying with the various regulations governing VEBAs, including:
- Who can establish a VEBA including governmental entities, large business, unions, and associations
- Multiple employer VEBAs
- Internal Revenue Code Section 501(c)(9) compliance
- Tax deductible employer contributions
- Permissible benefits
- How VEBAs are different from qualified retirement plans and deferred compensation plans
- Complying with ERISA regulations
- Receiving favorable tax-exemption from the IRS
- Asset accumulation and protection
- Paying out benefits
- Plan termination
- and more
