990?

[Guest tintree73]

This may be too basic - but does a VEBA trust that is part of an employee welfare benefit plan have to file a Form 990 or is it exempt? I saw on the instructions that a retirement plan does not have to file a Form 990 - but what about welfare benefit plans? Thanks!

[E as in ERISA]

A VEBA files a 990.

[Guest new2nqdc]

I could be wrong - but I believe that there are a few exceptions including one for entities that have less than 25,000 in gross receipts, certain religious/charitable trusts, etc. But I think the only one that could (arguably) apply to the VEBA would be the 25,000 gross receipt exception.

[E as in ERISA]

Yes. There are not specific exemptions for VEBAs. But any generally applicable exemptions would apply.

If I recall, one of the issues that you sometimes into with a VEBA is what is gross receipts. And what accounts should be considered part of the trust. The flow of money through these arrangements often isn't clear. One claim can be over $25,000. Depending on how the money flows it might or might not be part of the trust receipts.

[Guest tintree73]

Thanks for all of the responses! One last question on the "flow" issues - if the amounts are added to the trust in the same filing year and then paid out for claims that same year - would that count as "gross receipts"? I understand if there is no "easy answer" to this one, but I thought I would check

Thanks again!

[E as in ERISA]

You don't deduct outflows in determining "gross receipts." (If you do, then you're only looking at "net receipts.")

[Guest eestinsv]

What about the state filings? Many states require that an organization file a 990 with the state, but this is often related to charitable status. Do states also require their own filings or copies of the 990's, and is there a resource for determining what the filing requirements are for different states? I work with many VEBAs across the country.

Thanks,

Keith

[Moe Howard]

tin, the instructuions you read are wrong.

Defined contribution plans (a pension plan) have to file a 990, if the plan invests in a limited partnership.

[Guest Pensions in Paradise]

Moe - please provide a cite which supports your statement.

[Kirk Maldonado]

Pensions in Paradise:

Moe is close but no cigar. If a retirement plan invests in a partnership that produces UBTI, then the plan must file a Form 990T. I'm pretty sure that the plan must have UBTI of at least $1,000 to trigger this filing obligation, but I don't recall whether this threshold is based on gross or net income.

[bzorc]

In reading this thread, a situation came up in our office yesterday, where an attorney is referring a VEBA plan (providing welfare benefits, as well as benefits such as vacation and sick pay) that was established in 2002 but has never had a return filed. There are about 50 participants in the VEBA, and the VEBA maintains a trust to hold funds to be used to pay benefits on an ongoing basis. My question: In addition to the 990, is there a 5500 requirement? The last time I filed a 5500 for a VEBA was in 1988, so my memories are not as good as they used to be...

Thanks for any additional responses to this thread.

[Guest americasVEBA.com]

This may be too basic - but does a VEBA trust that is part of an employee welfare benefit plan have to file a Form 990 or is it exempt? I saw on the instructions that a retirement plan does not have to file a Form 990 - but what about welfare benefit plans? Thanks!

The easy answer is to read your IRS Determination Letter for your trust. It will tell you whether a 990 filing is necessary or not. I suspect that it most likely is.

See www.americasVEBA.com

[Lori Friedman]

The easiest way to sort through this is to think of the VEBA and the plans as separate "animals".

The VEBA is an I.R.C. Sec. 501©(9) exempt organization. It isn't a benefit plan; it's a entity that holds and invests plan assets. In general, a VEBA is required to file an annual Form 990. There are special rules for a VEBA; beware of the Form 990's last page. The normal exclusion codes -- which you would normally use to exclude an exempt organization's interest income, dividend income, gains(losses), etc. from taxation -- don't apply to a VEBA.

The plans file Form 5500 (if required).