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Guest jdgirard

Guidance on employee pay all VEBAS-websites, articles, etc.on design o

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Guest jdgirard

I am attempting to do some research on employee-pay all VEBAs. Does anyone know of any websites, sources, etc. Specifically, I need to know what happens if the VEBA does not pass nondiscrimination testing. How often does testing need to be done? If a participant leaves employment, I assume that you cannot force a participant to take his money out of the VEBA. Can a participant rollover his VEBA to another VEBA? Can a participant elect to suspend or decrease his contributions? Are there contribution minimums/maximums? Does an employer need to maintain the account for a participant who leaves his employment. What if the participant is missing? Can an employer impose an administration charge on the VEBA for a participant that leaves his money with the employer?

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Guest Matt Tuttle

Such plans meet the nondiscrimination requirements in IRC Section 505 which require employees become eligible by the time they have completed 3 yrs of service and attained age 25. Benefits provided must comply with the applicable IRC sections and their non discrimination provisions. Such plans are also subject to COBRA which mandates continuation coverage and HIPAA. They must also comply with ERISA procedural requirements such as hour of service crediting, claims for benefits and appeal rights.

Employees cannot be forced to contribut except under a collective bargaining agreement. Assets can never revert back to the employer. A departing employee can take his balance and roll it into another VEBA but chances are his new employer won't have one.

Matt Tuttle

203-609-9077

http://www.wealthadvisors.bigstep.com

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