what is a voluntary employees beneficiary association veba plan 
a voluntary employees beneficiary association veba plan is a tax exempt trust set up by employers or a group of employees to cover the eligible medical expenses of its members their dependents or designated beneficiaries these plans are typically funded by the employer and are governed under internal revenue code section 501 c 9 employee contributions may or may not be mandatory depending on the company plan although individual elections are not permitted however employees must be covered by an employer sponsored health plan to be eligible for veba membership additionally the company must observe rules established by the internal revenue service irs for creating and maintaining a veba 