501(c)(9)
501(c)(9) is an IRS tax exemption status that applies to "voluntary employees' beneficiary associations ... organized to pay life, sick, accident, or similar benefits to members or their dependents, or designated beneficiaries."[1]
Members of a voluntary employees' beneficiary association (VEBA) must maintain a unified professional bond through a shared employer, a collective-bargaining agreement or a labor union. Though the VEBA is composed of a professional network, the organization exists as a separate entity from the employer or employees.[2] The VEBA may be financed through the employer or the employees, but no financial earnings of the VEBA may be directed to a specific person or private shareholder. In addition, the VEBA must have a policy of nondiscrimination, unless the VEBA is the product of a collective bargaining agreement. [3]
Examples
- AT&T Union Welfare Benefit Trust
- National Rural Electric Cooperative
- Wal-Mart Stores Inc. Associate Health & Welfare Trust
- Wells Fargo & Company Employee Benefit Trust
- United States Steel Corporation Represented Retirees Benefit Trust[2]
See also
External links
Footnotes
- ↑ IRS.gov, "Voluntary employee beneficiary association - 501(c)(9)," accessed September 18, 2015
- ↑ 2.0 2.1 Wells Fargo, "An introduction to VEBAs," accessed September 19, 2015 Cite error: Invalid
<ref>tag; name "C" defined multiple times with different content - ↑ IRS.gov, "F. selected problems of voluntary employees' benefit associations (VEBAs)," accessed September 19, 2015
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