| Lance Wallach is a pension expert who has written | | | | upon how much tax planning the business wants. For |
| and spoken extensively on the benefits of a VEBA. I | | | | example, the VEBA can be used to fund a buy-sell |
| recently had the opportunity to be on a conference call | | | | agreement, or the VEBA beneficiary can be a life |
| with him and Tim Metz, CPA. Mr. Wallach explained | | | | estate set up to avoid probate. |
| the benefits of a VEBA under IRC 419(e). There are | | | | There may be tremendous benefits to profitable |
| huge advantages with this type of plan as compared | | | | businesses with two or more key employees to use a |
| with a 401(K). There are no contribution limits on a | | | | VEBA to fund a buy-sell agreement, and the funds |
| VEBA, you can set variable vesting times, withdrawals | | | | contributed for the buy-sell agreement are deductible |
| at any time are tax-free as long as the money is | | | | going in and tax-free coming out. The VEBA also |
| spent on the employee's health and welfare, and | | | | offers almost unlimited opportunities to fund |
| post-retirement medical expenses can also be funded. | | | | employees' health and welfare benefits which are also |
| Mr. Wallach's company sets up and administers the | | | | deductible going in and tax-free coming out. I can |
| VEBA plans with the help of CPAs and attorneys | | | | provide you with more information about VEBAs or |
| licensed in the state where the business is located. | | | | you can visit Mr. Wallach's website and read the |
| The typical set-up fee is between $6,500 and $10,000, | | | | numerous publications he has written on the subject. |
| all of which is tax deductible. The set-up fee depends | | | | |