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VEBAs and 419A(f)(6) Plans

Course Objective 

            This course was created to teach advisors (CPAs, EAs, accountants, attorneys, financial planners, insurance advisors) about a topic that is becoming more widely known (and not in a good way) and one that can provide a tremendous benefit to many medium-to-small business owners.  

            Each year advisors with high-income/net worth clients hear how much those clients would like to reduce their income taxes. This course will discuss Voluntary Employee Beneficiary Associations (VEBAs) and why they can be a terrific income tax and estate planning tool when used correctly.  Just as important will be the background on VEBAs and 419 welfare benefit plans as well as the recent law changes and how VEBAs can be used in a conservative manner today.


Voluntary Employee Beneficiary Associations (VEBAs)

and 419A(f)(6) Plans

1) Introduction

a) History

b) Single Employer Trusts 

2) VEBA Basics

a) What is a VEBA?

b) What is the difference between a “VEBA” and a Section 419 WBP?

c) Economic Benefits of VEBAs

d) Are VEBA Assets Protected from Creditors?

e) Businesses that can Benefit from VEBAs

f) What are the Death and Living Benefits of a VEBA?

e) Long Term Care Coverage (LTC)

g) Is a VEBA subject to ERISA reporting?

f) May Employees be Excluded from the Plan?

3) Can Individual Universal Life Insurance Policies be used in VEBAs?

a) Death Benefits can Pass Income and Estate Tax Free

4) Plan Contributions 

5) What Happens if an Employer Terminates a VEBA? 

6) Abuses

a) Why Would a Small Employer Want to use an “Abusive” 10-or-more employer Welfare Benefit Plan (WBP)? 

7) IRS Regulations

a) Listed Tax Transaction  

8) Should your Clients get Involved with an Abusive 419A(f)(5) Union Plan?

9) Avoid IRS Scrutiny 

10) Did the IRS Succeed in shutting down the sales of abusive plans? 

11) How are WBPs Sold Today?   

12) What is the Proper Way to Sell and Use a WBP? 

13) Should your client be Using 10-or-More Employer WBPs?   

14) Conclusion


© 2017 The Wealth Preservation Institute • St. Joseph , MI • (269) 216-9978