Voluntary Employees Beneficiary Association

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Voluntary Employees Beneficiary Association

Also called a VEBA. A non-profit organization in the United States that administers employee benefits. Under the subsection, profits from a VEBA are tax free, provided employees are not required to join, members control the organization, earnings do not benefit any one member or group of members and the VEBA does not substantially engage in any activities other than administration of benefits.

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VEBA assets are protected from the claims of creditors, the amounts in which contributions are made can be flexible and benefits are highly favorable to the business owners, with no vesting for employees.

An employee benefit plan you've probably not heard of

Since deemed unrelated income of a welfare benefit trust is defined in section 419A(g)(2) as the amount that would have been in the fund's UBTI under section 512(a)(3) if the fund were a VEBA, and there is no indication that a different aggregation rule wax intended for non exempt welfare benefit funds than for VEBAs, we infer that Congress was assuming that an employer could elect to aggregate two or more VEBAs, or one or more VEBAs, and one or more non-exempt funds under section 419A(h)(1)(B) for purposes of calculating UBTI under section 512(a)(3)."

Current developments, part I

The total divestment of Veba Oel continues the group's programme of non-core disposals as it hones its focus on energy activities.

Slick move: E.ON sells remaining stake in Veba Oel to BP

Can a business have a VEBA and a qualified retirement plan?

VEBAs

The tax code now requires that the trust or VEBA calculate gains and losses of each "trade or business." In the absence of regulations or additional guidance from the Treasury Department or the IRS providing otherwise, the IRC now appears to require that a trust or VEBA treat each investment fund as a separate trade or business.

Unrelated Taxable Income and Pensions

In addition to the new hospital network, the district worked with its VEBA trust, the Boards of Education Self-Funded Trust (BEST), to implement a new investment opportunity for the trust assets.

Colorado Springs District 11 rethinks health care

Neither the former employer nor the VEBA was required to reimburse the subsidiary for its obligations under the reinsurance contract.

Will Rev. Rul. 2014-15 expand the use of captive insurance companies?

The funding of an HSA or VEBA account with the cash equivalent of unused vacation days provides tax benefits to both the employer and employee.

Converting unused vacation days to current and retiree medical benefits

The deal will bring an end to the case that has been under way in the Delaware courts to decide on a price for Veba's stake.

Fiat to buy remaining stake in Chrysler for $3.65bn

Delaware Court of Chancery Judge Donald Parsons stopped short of ordering VEBA, the United Auto Workers trust, to sell 54,154 Chrysler shares to Fiat for $139.7 million, as the Italian carmaker had sought in its lawsuit filed last year.