Key
Features
-
Contributions are tax
deductible
-
Growth of trust is tax exempt
-
Certain distributions are
excluded from taxes
The
Sterling Benefit Plan is a group
insurance plan under which
employers may elect to provide
future welfare benefits for
employees and their
beneficiaries through a welfare
benefit fund that complies with
Sections 79, 101, 105, 419, 419A
and 505 of the Internal Revenue
Code.
The
Sterling Benefit Plan emphasizes
the following types of benefits:
-
Pre-retirement death benefit
-
Post-retirement death benefit
-
Retiree medical benefit
-
Health reimbursement account
benefit
The
Sterling Benefit Plan is
generally appropriate for
employers who desire to provide
additional benefits over and
above retirement benefits to
their employees (and obtain
additional tax deductions for
providing such benefits). More
and more frequently,
professional corporations have
adopted the Sterling Benefit
Plan as a supplement to their
existing benefit programs. In
addition, they are appropriate
for those employers who desire
to provide excellent benefits to
their employees, but prefer
slower vesting and benefit
accrual rules than those
provided under qualified
retirement plans.
Although the Sterling Benefit
Plan is subject to
non-discrimination rules which
require that "non-highly
compensated" employees benefit
under the plan at a rate
comparable to the rate at which
"highly compensated" employees
benefit. However, such
requirements are much easier to
satisfy than similar
requirements imposed under
qualified retirement plans.
Because of administrative costs
associated with this type of
program, it is generally a good
idea for employers with 10 or
more employees who desire to
make substantial contributions
to the plan ($40,000 or more
annually).
For
further information, you may
visit the following links:
VEBAPlan.com
VEBA Insurance and Investment
Links |
