Originally Posted by
757Driver
I'd prefer the split plan but aren't you being selfish insisting on a VEBA plan that penalizes the higher wage earners amongst us?
Not sure why we can't split it ala JB & HA and I'd like to know why? This one size fits all mentality is frustrating and if other options are available, why not explore and pursue them?
What you’re missing (or I missed you mention it) is that the VEBA is one of the few tax free pay/growth options we have. Putting that money in your B fund to pay those same medical bills that you’ll have in retirement.... it may be up when you withdraw it, it may be down, either way you’ll have to pay income tax on it.
It’s one less thing I need to pay for with taxable dollars in retirement, and I applaud ALPAs foresight in trying to find us more tax free avenues of compensation. Higher pay rates just increase our taxable income, if I have $250k in my VEBA the day I set the brake for the last time, then I know I’ve comfortably got my healthcare needs for my wife and I paid for and what’s in my B fund and other investments is ours for whatever we want to do with it. I’m not worried about what percentage I could possibly need in the future to cover unforeseen medical expenses.