Tax Strategies

“In this world nothing can be said to be certain, except death and taxes.”

—Benjamin  Franklin

BAA is not prone to disagreeing with Mr. Franklin, but in this instance we are happy to be able to provide you with an extraordinary escape from taxation for your retiree health care expenses!

The IRS carves out an exception to taxing your payroll contributions, investment growth, and disbursements through the VEBA program. 

NOTE:  This includes your Leave Pay-Outs as well (see Leave Pay-Out section).

Other tax-advantaged investment plans allow for certain tax-free components.  These include:

  1. 457 Plans

  2. 403(b) Plans

  3. IRA’s

  4. Roth IRA’s

  5. Keogh Plans

But all of these still have restrictions.  If the plan has pre-tax contributions, your disbursements are taxed.  If your disbursements are tax-free, you must invest post-tax money.

The VEBA program delivers the best of all worlds to you: Triple Tax-Advantaged Investing

  1. Pre-Tax Contributions
  2. Tax-Free Investment Growth
  3. Tax-Free Disbursements

In any strategic financial plan, minimizing or eliminating taxation is key.  The VEBA is that extraordinary investment that allows you to preserve and invest your money. 

After all . . .

“Its not how much you make—it’s how much you keep”