What is a VEBA account?
I am interested in learning more about a VEBA account. I have heard my friends talk a lot about these recently and went online to see if I could get more information. Unfortunately, this is very limited information around VEBA.
VEBA is an acronym for Voluntary Employee Beneficiary Asssociation. A VEBA account is a tax-free medical expense account for retired people and their eligible dependents. It is funded by unused sick leave that an employee may have accumulated at the time of retirement. The benefit of a VEBA is that unused sick leave at retirement is able to be utilized through a VEBA for future medical expenses in a manner that is tax-free.
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