Upload
shannon-phillips
View
218
Download
2
Tags:
Embed Size (px)
Citation preview
Medical expense plan for Washington State employees in general government agencies and higher education institutions
• Growing cost of post-employment health care• What is the VEBA Plan?– Tax advantages; key benefits– Getting money in; getting money out– Investment options
• About VEBA Trust• Typical enrollment process• Questions?
Topics
Find your current age below:
How much will you spend?
Current Age
How will you pay for it?
• “Account-based” health plan
• Funded by employer
•Tax-free money for future health care costs
What is VEBA MEP? Health Reimbursement Arrangement
Employees and employers
Pay No Tax
“Win-win” tax advantage
Key benefits
You…
Key benefits
Your…
Getting money in
Compensable unused sick leave cash-out contributions at retirement
No individual choice; all employee group members defined as eligible must participate per IRS rules.
VEBA MEP
Keep more of your money
You pay taxes and keep
less
You pay taxes and keep
less
You pay no tax
and keep it all!
You pay no tax
and keep it all!
SAVE up to 33% in taxes on contributions
Taxablewages
Make your money last longer
VEBA MEP Plan (tax-free withdrawals)
VEBA MEP may last over 40% longer than your tax-deferred investments
Tax-deferred investments(taxable withdrawals)
$50,000
$0
Assumes each account (1) holds $50,000 at time of retirement; (2) is used to pay $500 per month for medical expenses; and (3) earns a 5% annualized investment return net of fees.
VEBA MEP lasts 10.8 years
Investment options
Getting money out
• Created in 1984; non-profit, tax-exempt• Managed by board of trustees• $135 million in assets• 35,000 participants; 400 employers• Operating costs 1.65% (+/-) annualized
About VEBA Trust veba.org
• 25 years of experience• Nationally recognized
1-800-422-40231-800-422-4023
Plan consultant hraconsultants.org
• Claims• Eligible expenses • Account information• Investment changes
1-800-VEBA101 (832-2101)
Third-party administrator
Typical enrollment process
Questions?
• Use VEBA MEP to help cover your out-of-pocket health care costs– You pay no tax on contributions, earnings, or
withdrawals (claims)– You self-direct your investments– You can use your account anytime– Your spouse and dependents are covered– Your unused account balance carries over
Summary