Guest Bev Report post Posted June 24, 2002 Are there regulations that govern the types of investments that a VEBA may hold? Are mutual funds an acceptable investment option? The VEBA is for a governmental agency. Thanks. Share this post Link to post Share on other sites
mbozek 27 Report post Posted June 24, 2002 A VEBA is a tax exempt orgainizaton under IRC 501©(9) and is subject to the rrestrictions on conflict of interest, related parties, UBIT, etc for an any TXO. A Government plan would be subject to any restrictions on investing by a government plan under state laws as well as state law restrictions on investing by non profit organizations. Share this post Link to post Share on other sites
vebaguru 4 Report post Posted June 28, 2002 In addition to the comments by MBOZEK, I would like to point out that the VEBA may be used for funding a welfare benefit plan that is subject to ERISA. If so, the ERISA fiduciary standards (prudent man, diversification, prohibited transaction) would also apply. And of course, no participant loans. Share this post Link to post Share on other sites
