Posted 27 June 2002 - 03:38 PM
or, can you allow VEBA funds to sit idle pending payments to service providers??
Posted 28 June 2002 - 03:57 PM
Back to the basic question- Why would the er want the veba not to invest plan assets in stable value or mm fund since the VEBAs income is not subject to taxation?
Posted 02 July 2002 - 03:57 PM
Posted 02 July 2002 - 04:29 PM
Posted 03 July 2002 - 10:54 AM
is the veba subject to erisa or not?. its a employee benefit VEBA plan to provide medical benefits to employees.
secondly it may not be prudent if the cost of moving the money for a day or two into an investment, would cost more than having it invested would yield.
Posted 03 July 2002 - 11:07 AM
I've seen some VEBAs that invest in non-interest bearing accounts, so that they can keep funding levels up without having to worry about UBTI.
Posted 12 July 2002 - 04:12 PM
The VEBAs I administer have arranged to be held in "sweep accounts" so that excess funds are placed overnight into interest bearing accounts. This is an automatic (no-charge) function with most banks.
UBIT applies for accumulation accounts for future medical benefits. (UBIT does not apply to the 25% reserve for delayed claims permitted under IRC section 419.)