Voluntary Employees' Beneficiary Association - VEBA

AAA

DEFINITION of 'Voluntary Employees' Beneficiary Association - VEBA'

A type of mutual organization that provides life, illness, accident, medical and similar benefits to members, their dependents or their beneficiaries. The association can be established by employees or by an employer and must consist of employees of the same company or same labor union. VEBA benefits normally end when the employee leaves the company or labor union with which the VEBA is associated.

INVESTOPEDIA EXPLAINS 'Voluntary Employees' Beneficiary Association - VEBA'

Funds may be contributed to a VEBA either the employees or their employer. Employer contributions are often tax-deductible to the employer. VEBAs themselves are authorized by Internal Revenue Code section 501(c)(9) as tax-exempt organizations as long as their earnings are only used for providing benefits. However, benefits paid out to employees are not necessarily tax exempt to the employee.

RELATED TERMS
  1. Vested Benefit Obligation - VBO

    The actuarial present value of pension plan benefits belonging ...
  2. Benefit Allowance

    Money that a company or government agency provides to an employee ...
  3. Certified Employee Benefit Specialist

    A professional designation available in both the United States ...
  4. Employee Stock Ownership Plan - ...

    A qualified, defined contribution, employee benefit (ERISA) plan ...
  5. Target-Benefit Plan

    A benefit plan that is similar to a defined benefit plan since ...
  6. Disease Management Program

    Disease management programs can help control health care expenses ...
Related Articles
  1. Job Hunting: Higher Pay Vs. Better Benefits
    Retirement

    Job Hunting: Higher Pay Vs. Better Benefits

  2. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  3. Selecting The Right Mix Of Insurance ...
    Home & Auto

    Selecting The Right Mix Of Insurance ...

  4. Should You Bite On Dental Insurance?
    Insurance

    Should You Bite On Dental Insurance?

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center