Christine Roberts Posted February 12, 2003 Report Share Posted February 12, 2003 Presume a large group of retirees have won a class-action settlement arising from a broken promise to provide lifetime health benefits. Individual award amounts will range from $1K to $100K. Is there any way to use a VEBA or other arrangement such that settlement funds will be put towards medical coverage or care in a manner that is nontaxable to the plaintiffs? I am exploring VEBAs, 401(h) arrangements, 105(h) arrangements, HRAs, "retiree medical accounts (a Watson Wyatt product, I believe), and uninsured plans under 104(a)(3). Any and all comments and suggestions are appreciated. Link to comment Share on other sites More sharing options...
Guest b2kates Posted February 12, 2003 Report Share Posted February 12, 2003 Christine, yes generally for a VEBA, a number of years ago, when I was with KPMG I wrote the PLR request to establish a VEBA for post retirement medicals for a bankrupt company and the ensuing litigation. IRS determined VEBA was proper and not subject to 419A limitation. the Fund was then established with about 5million and covered approx 1,000 retirees. If you want to discuss send me a note. Link to comment Share on other sites More sharing options...
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