benpat3 Posted July 18, 2007 Report Share Posted July 18, 2007 If a plan has a VEBA set up and along with providing other benefits reimburses medical expenses, does the Plan have to set up a seperate HRA, funded by the VEBA, that only reimburses medical expenses in order for these reimbursements to not be included in the participants gross income? A VEBA may provide life, sickness, accident or other similar benefits. It seems to me that a VEBA may reimburse medical expenses without having to have an HRA set up. I have read Rev. Rul. 2005-24 which states "[t]his ruling applies to any purported employer-provided medical reimbursement arrangement, regardless of how the arrangement is characterized..." Is this sentence in Rev. Rul. 2005-24 the reason why an HRA must be set up within a VEBA to reimburse medical expenses. Benjamin Smith Senior Manager - Indirect Tax Ernst & Young 317.681.7495 Benjamin.Smith@ey.com Link to comment Share on other sites More sharing options...
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