Did you Participate in a 419 or 412i Benefit Plan?
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F. SELECTED PROBLEMS OF VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATIONS (VEBAs) 1. Introduction and History The VEBA is a mutual association of employees providing certain specified benefits to its members or their designated beneficiaries. It may be funded by the employees or their employer. The VEBA has existed in the tax law since the Revenue Act of 1928 when it was given exempt status under section 101(16) of the Act. Exemption for this entity was re-enacted by the Revenue Acts of 1932, 1934, 1936, and 1938. The VEBA was incorporated into the 1939 Code as IRC 101(16) and subsequently into the 1954 Code (the present Code), as amended to date, as IRC 501(c)(9). IRC 501(c)(9) exempts from federal income tax the voluntary employees' beneficiary association (VEBA) providing for the payment of life, sick, accident or other benefits to its members (or their dependents or designated beneficiaries) if no part of the net earnings inures (other than through such payments) to the benefit of any private shareholder or individual.
F. SELECTED PROBLEMS OF VOLUNTARY EMPLOYEES'
ReplyDeleteBENEFICIARY ASSOCIATIONS (VEBAs)
1. Introduction and History
The VEBA is a mutual association of employees providing certain specified
benefits to its members or their designated beneficiaries. It may be funded by the
employees or their employer. The VEBA has existed in the tax law since the
Revenue Act of 1928 when it was given exempt status under section 101(16) of the
Act. Exemption for this entity was re-enacted by the Revenue Acts of 1932, 1934,
1936, and 1938. The VEBA was incorporated into the 1939 Code as IRC 101(16)
and subsequently into the 1954 Code (the present Code), as amended to date, as
IRC 501(c)(9).
IRC 501(c)(9) exempts from federal income tax the voluntary employees'
beneficiary association (VEBA) providing for the payment of life, sick, accident or
other benefits to its members (or their dependents or designated beneficiaries) if no
part of the net earnings inures (other than through such payments) to the benefit of
any private shareholder or individual.