Single VEBA may consist of several separate welfare benefit funds maintained pursuant to collective bargaining agreements

Article Abstract:

The IRS found in PLR 9617041 that two sub-trusts that an employer established under a voluntary employees' beneficiary association were not subject to IRC section 419A limitations because the sub-trusts were separate welfare benefit plans that were established under collective bargaining agreements. The welfare benefit plans provided employees and retirees with health and life insurance. The IRS regulations under section 419A were applied to determine whether the funds were maintained pursuant to a collective bargaining agreement.

---

DOL proposes regs. on welfare plans established or maintained pursuant to collective bargaining for purposes of MEWA rules

Article Abstract:

The US Dept of Labor has provided guidelines regarding when a welfare benefit plan has been established pursuant to a collective bargaining agreement because the Employee Retirement Income Security Act does not apply to multiple employer welfare arrangements arising out of collective bargaining. The proposed regulations identify what constitutes collective bargaining as well as what employee coverage is required. The Dept of Labor notes that these regulations only apply in the multiple employer welfare arrangement context.

---

VEBA subtrust is separate collectively bargained welfare fund

Article Abstract:

The IRS ruled in Letter Ruling 9741050 that a subtrust of a voluntary employee benefits association was a separate collectively-bargained fund and allowed the contribution limitation exclusion of IRC section 419A(f)(5). The former employees who were fund beneficiaries were covered by a collective bargaining agreement meeting the IRS's 90% requirement. The IRS also noted the existence of arms-length and good faith dealings as two other factors underlying its determination.

Tax deductions

Similar abstracts:

• Abstracts: Flying solo: one attorney transitions to his own firm and finds effective billiong system . 9th Annual Readers' Choice Awards
• Abstracts: The myth of disbarment; NLJ finds half of the disbarred who reapply win reinstatement. Title insurers eye N.J. lawyers under ethics cloud: newly opened disciplinary process lets them keep tabs
• Abstracts: The early evolution of the United States patent law: antecedents. Antecedents
• Abstracts: Interest on loan to pay estate tax was deductible. Reasonable certainty of death prevented use of actuarial tables for valuation
• Abstracts: Deferral of estate taxes: calculating the benefit and the funding. Interest rate reality and the relevance to the sale of life insurance

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.