Federal Tax

VEBAs and Other Self-Insured Arrangements (Portfolio 395)

  • This Portfolio analyzes the business, tax, and legal considerations of self-insuring or self-funding group employee benefits, such as life, sick, accident, and other similar benefits.


Bloomberg Tax Portfolio, VEBAs and Other Welfare Benefit Funding Arrangements, analyzes the tax and other legal considerations relevant to pre-funding employee “welfare benefits” such as life, medical, accident and other similar benefits.

Specifically, It describes the principal characteristics of and rules that apply to the different types of entities that may be used to fund such benefits, including voluntary employees’ beneficiary associations (VEBAs) under §501(c)(9), trusts established by governmental entities under §115, nonexempt trusts, and captive insurance companies. It also addresses the rules that govern the tax deductibility of contributions to welfare benefit funds under §§419 and 419A.

Table of Contents

I. Self-Insured Employee Benefits
II. Income Tax Treatment of Employees
III. Deductibility of Employer Contributions and Reserve Limits
IV. Section 501(c)(9) – Voluntary Employees’ Beneficiary Associations (VEBAs)
V. Nonexempt Trusts

Andrew Stumpff
Butzel Long
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