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What are some of the Non-tax Advantages of either a VEBA or an IRC § 419(e) WBP?

April 26, 2017advantages IRC non-tax veba wbp

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What are some of the Non-tax Advantages of either a VEBA or an IRC § 419(e) WBP?

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• IRC §419(e) benefits can be selective by design with all but post-retirement medical and post-retirement life. All plans that provide post-retirement benefits may limit benefit entitlements to plan participants who actually reach a stipulated retirement age and fulfill a minimum number of years of participation and/or service e.g. 10 years, 15 years, etc. • An IRC §419(e) WBP, for all but post-retirement benefits, allows you to use all compensation in the design equation – you are not constrained by the indexed IRC §415 limits ($225,000 in 2007). VEBAs must comply to IRC §415 limits in all cases. • VEBAs and IRC §419(e) WBP plan design can help retain and reward valued employees ( golden handcuffs ) , as well as, marginalize the plan cost for non-productive, short term human resources.