Leave Pay Solution
You’ve devoted decades to your career. Along the way that dedication brought you into work even if you weren’t feeling completely well. You passed up on vacation time. Now, at your retirement, your employer rewards you with your accumulated Leave Pay-Out.
This is often a large amount (sometimes exceeding $100,000). As you may have learned from your peers though, this lump sum pay-out is NOT all yours.
This money is taxed as ordinary income, so what actually makes it into your account is slashed. Further, this often kicks you up into a higher tax bracket, which means even more is taken.
As an option, some agencies establish the VEBA solely for the Leave Pay solution meaning zero payroll deduction contributions on employer contributions. A simple annual fee opens the program to employees as they retire.
The VEBA Solution enables you to contribute Leave Pay-Outs into your VEBA account without getting taxed! That’s right, your Leave Pay-Out is treated just like your payroll contributions.
No taxes on the leave pay-out amount.
No taxes on the investment growth on that money.
No taxes when you use it for qualified expenses.
VEBA is the solution.