Guest Bev Posted June 24, 2002 Report Share 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. Link to comment Share on other sites More sharing options...
mbozek Posted June 24, 2002 Report Share 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. mjb Link to comment Share on other sites More sharing options...
vebaguru Posted June 28, 2002 Report Share 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. Link to comment Share on other sites More sharing options...
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