California Public Employee Relations (CPER) Papers

CPER Selected Publications

 

VEBA: A Tax-Exempt Alternative for the Reimbursement of Health Care Costs

Daniel S. Connolly Esq., City of Hayward

Article comments

This article appeared in California Public Employee Relations (CPER) Journal, No. 176 (February 2006). Foro more information on the CPER Program, go to http://cper.berkeley.edu/.

Abstract

Over the years, employers and employees have used a variety of plans to provide active employees as well as retirees with certain types of benefits. Whether by way of a 401(k) or a health savings account, participants have been able to secure substantial savings because of their contributions on a pretax basis. Employers and employees, though, have another vehicle available to achieve similar savings when paying medical expenses or premiums: a Voluntary Employees’ Beneficiary Association.1 A VEBA is a tax-exempt trust whose funds are used to pay eligible medical expenses. This article summarizes the significant characteristics of a VEBA and provides a general overview of its operation.

Subject Area

Accounting, Employment Practice, Retirement Security, Taxation

Recommended Citation

Daniel S. Connolly Esq., "VEBA: A Tax-Exempt Alternative for the Reimbursement of Health Care Costs" (February 2006). California Public Employee Relations (CPER) Papers. CPER Selected Publications. Working Paper 20.
http://law.bepress.com/cperselect/papers/art20

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