Mandatory coverage

[Don Levit]

mjb:

John Simmons very adequately described this as primarily a way to comply with the money not being constructively received, and still be, ultimately, employee dollars.

Sort of having the best of both worlds; the tax advantage of (ultimately) employee money.

Don Levit

[GBurns]

Don

Your logic makes no sense. The IRS saying that contributions for a 401(k) cannot be routed through a VEBA does not, clearly or otherwise, state, imply or infer much less acknowledge, that contributions from a cafeteria plan can be routed through a VEBA. The need to state what is covered is simply to define the limits and scope. If you look at section 125, you will see that it also similarly states what benefits are includable. It is standard practice to specify scope and to give definitions.

Why would it be needed to route employee contributions through the VEBA anyhow ? Why not straight to either the insurer or to the health plan (if self funded) ?