419(e) and VEBA

[padthaiforlunch]

Is anyone here using 419(e) plans or VEBA as part of their offerings to clients, or is that beyond the scope of this board?

It appears these are not tax transactions if funded via annuities for the purpose of retirement medical benefits.

Is it even worthwhile to use such an approach considering the latest IRS notices and rulings? Is there anyway to include life benes as things stand?

 

[somarco]

Gee .. .

Haven't heard of VEBA's in years. They were used at one time to fund life insurance (and a few other things). Most of the idea's were shot down by the IRS.

I don't know anyone who is even touching them.

Go back a few years and it seems everyone was promoting RLR, Section 79 life insurance, VEBA and pensions funded with RE contracts. So much abuse almost all of those ideas went the way of off-shore bank accounts.

You might want to keep walking on that one.

 

[COflyfisher]

I do know a bit about VEBA's, but can't say I ever bring them up. I would have to review my material to give you better answers. For small groups, once we look at a deferred comp plan or a 412i, there's not really much need for a VEBA.

I don't know much about estate planning, but I think you can get the same benefits of passing on your estate to your heirs with an ILIT without handcuffing the money to health and welfare.

For municipalities (again I would have to reference my materials) what many have been currently using to fund retiree benefits was never approved by the IRS, or at least the way the accounts were set up were never approved, the VEBA would work great.

 

[padthaiforlunch]

I do know a bit about VEBA's, but can't say I ever bring them up. I would have to review my material to give you better answers. For small groups, once we look at a deferred comp plan or a 412i, there's not really much need for a VEBA.

I don't know much about estate planning, but I think you can get the same benefits of passing on your estate to your heirs with an ILIT without handcuffing the money to health and welfare.

For municipalities (again I would have to reference my materials) what many have been currently using to fund retiree benefits was never approved by the IRS, or at least the way the accounts were set up were never approved, the VEBA would work great.

Reference materials....

I'm building my reference library. So far:

US Master Tax Guide
Other tax reference guides
Litany of finance books by Graham & Dodd, Seigel, Malkiel, etc....

What do you guys consider "must have" for reference material (focus on insurance, emp. benes...)?

 

[somarco]

Just about anything from National Underwriter is good. If you are into tax stuff, CCH has a wealth of information.

AUS has been around for years.

Joe Kristan writes a lot of good stuff (insurance related) for Roth & Co.