Originally Posted by
Trip7
I like the concept of the VEBA. Now a 5% return on a VEBA I'll take because very very few investors can beat a triple tax advantaged account with a taxable one. Petitioning the IRS to allow pilots to limit the amount of DPSP Cash that goes into the VEBA would be a big win. Although VEBA funds do not pass on to your estate, I think it's a good trade-off for tax free dollars going towards the largest expense for most retirees
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The medical VEBA would have been a really great plan. At about $1/flt hour input ($1000/year... $25,000 in a 25-year career), it would have been relatively low cost, but the forums killed it over the issue of its estate-ability. So strange. The tax savings aspect was huge. If I die, my wife gets it; if we both die, dependent kids get it. If all of the above die before completely exhausting the balance (these funds could be exhausted early in retirement well before tapping into HSA balances), the Delta pilot group gets the remainder. What I think is misunderstood, is that most people on their deathbed in the hospital would use up their VEBA fund. Estate-ability issues would realistically apply to very very few.