IRS Issues Private Letter Ruling on Retiree Medical Funding

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2/27/2004: IRS Issues Private Letter Ruling on Retiree Medical Funding (McDermott Will & Emery)

Excerpt: A recent private letter ruling from the Internal Revenue Service (IRS) permits the use of a tax-effective method for funding retiree medical obligations.... Under the facts of the ruling, the VEBA will purchase a non-cancelable group retiree health insurance policy from an insurance company. The policy will be purchased by the VEBA.

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