*has the option to go into a MBCBP.

every comm I have seen from the union so far has stated this will be optional as long as the IRS approves it being optional.

just curious, why?

Can the balance in a VEBA be invested in the market like a HSA?

UAL’s is invested. Last year’s return was 8%, (*I think).

What?
 

Wait a sec… so for my United 401k, anything over the 19.5k 401k cap just disappears into an account I don’t use for retirement? I’m a military retiree, so I’ve got Tricare ad have little use for gobs of money that can be used for healthcare. What gives? That’s a HUGE amount of money I’m leaving on the table.

Not UAL, but I think the definition of what VEBA money can be spent on is pretty broad.

But don’t forget, it’s not just the 19.5k limit. There are multiple, overlapping limits as part of 415(c) and 401(a) that can stop contributions. You could reach the total contribution limit or the maximum w2 limit. In either case, you get the “spill” cash at DAL, or into the VEBA at UAL.

I’m obviously ignorant of all this 401k stuff. What is the limit for employer 401k contributions, such as at United?

This is basic IRS limits stuff. Recommend you read up on it. If you're already at UAL, then reach out to your local Rep and he can point you in the right direction.

it’s not your elective deferrals but DC excess from the company contributions that go towards the VEBA

https://www.investopedia.com/retirem...bution-limits/

here is a place to start.

Thank you. I was confused over the individual vs company contributions. Valid - I have the power of the internet at my fingertips. A google search goes a long way.

Can't recall what the latest news on the MBCBP is... waiting for official IRS approval or do we have specific terms to review?

Why doesn’t UAL put the excess contributions to cash like DAL does? Is this something that could be changed in the contract?