RHA VEBA Vacation email
 

Has anyone received an email from company soliciting vacation forfeiture in exchange for VEBA funding yet?

Not that I've seen.

I contacted them 3 weeks ago asking if they would handle it the same as last year. They replied they would.

I received the letter.

"You are receiving this notice because you may be eligible to make a post-tax contribution to the United Airlines Pilot Retirement Account Plan (“PRAP”) for the 2017 plan year, which ends December 31, 2017.

Post-tax contributions can be made after you have made the maximum pre-tax and/or Roth 401(k) deferral contribution for 2017 ($18,000 if you are under age 50, plus an additional $6,000 if you are age 50 or older in 2017). Contributions made on your behalf will also be considered in the calculation"

I have a few days of monthly vacation left. I don't really plan on using them next year. What are the pros and cons of forfeiting them into the RHA vs the PRAP? I'm late 30s.

Thanks guys.

There are probably some relatively minor tax implications, but I don't know enough to comment on them.

On the plus side, any pre-tax monies that you can stash away to be used later...seems to be a no-brainer to me since you'll lower your taxable income and add to your account. That is, of course, provided that you and your spouse don't meet an untimely demise and just wind up leaving that money to the gubmint.

RHA is fantastic. Tax free in, tax free growth, tax free withdrawals. I would think MOST people will spend enough on health care post retirement to make this a great place to stash money.

However... if you are not married and/or don’t have kids, you cannot designate a beneficiary. So if you die, that money goes back into the pilot pool. Just FYI

Not a bad stipulation for such an amazing program. Originally an executive perk, the VEBA can be used for all sorts of things including Medicare and health insurance premiums, items typically associated with a FSA, massages, medical travel (think buying tickets to see your doctor in Florida) and more.

I have a friend who's dad was an executive with a VEBA and he told me about all the things he purchased with it. It's not just for copays, folks!

It's a very flexible benefit and the more I learn about it the more I like it.

I was able to max out my contributions this year, that may be why I haven't gotten the letter. No room left--a nice problem to have.

Don't know if I'll be able to do that this year. I've been putting a big chunk of profit sharing into the 401k.

I'm out on sick list and have 42 days vacation coming up in January. I will not be returning to work becau as I will hit the magic age shortly after my vacation . Is there anyway I can sell the vacation back to the company (which will go to RHA) and remain on sick list so I won't leave any sick list on the books when I am mandatorily retired.