California Public Employee Relations (CPER) Papers
CPER Selected Publications
VEBA: A Tax-Exempt Alternative for the Reimbursement of Health Care Costs
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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