Originally Posted by
Planetrain
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.
I agree with you for the most part. I think the biggest reason why VEBA was killed was the inability of a pilot to restrict how much DPSP Cash went into the VEBA. Also it would have killed off the viability of the Mega Backdoor Roth.
If we can get a VEBA that is solely company funded or allows the pilot complete control of how much of their funds go in it would be a big win for the pilot group.
Sent from my SM-G975U1 using Tapatalk