I do exactly as Mako stated. I have 10 exemptions going into the new year and have 100% pretax going to my 401k. Once the pretax bucket's maxed out, I have 100% post-tax going to my 401k.

After maxing out my post-tax 401k, I change my exemptions down to 0 plus have $1k/paycheck go to taxes until I'm caught up for the year.

As far as 'peanuts,' I have put just over $23K in excess contributions into my VEBA so far this year with no vacation sellback. (787 FO on year 12 pay).

The reality of retirement medical costs is that they are large and getting bigger. We (wife, I) have Tricare and we will have to pay medicare Part B when we retire (Medicare Part B is required for Tricare at 65). Based on 2017 Part B rates, I'll have to pay $428.60/mo for at least two years (I plan on converting all taxable 401k money to Roth after I retire which will extend that cost for a few more years) and will eventually drop down to $187.50/mo x 2 (wife, me) when my wife retires. https://www.medicare.gov/your-medica...t-b-costs.html

If you or your spouse ends up in a nursing home, your VEBA will evaporate very quickly.