Lance Wallach is a pension expert who has written and spoken extensively on the benefits of a VEBA. I recently had the opportunity to be on a conference call with him and Tim Metz, CPA. Mr. Wallach explained the benefits of a VEBA under IRC 419(e). There are huge advantages with this type of plan as compared with a 401(K). There are no contribution limits on a VEBA, you can set variable vesting times, withdrawals at any time are tax-free as long as the money is spent on the employee