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What is a VEBA and what are the tax objectives of the Plan?

April 26, 2017Plan tax veba

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What is a VEBA and what are the tax objectives of the Plan?

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A VEBA is a tax-exempt trust authorized by the Internal Revenue Code Section 501(c)(9). The tax objectives of this type of plan are to enable your employer to make tax-free deposits on your behalf to the Plan, for your account to be credited with tax-free investment earnings, and to enable you to obtain tax-free reimbursements for your medical expenses and insurance premiums payments. VEBA-MEP contributions will not be reported on your W-2.