About Montana VEBA HRA
The Montana Voluntary Employees’ Beneficiary Association Health Reimbursement Account (the Montana VEBA HRA) is a post-employment medical expense reimbursement program. The Montana VEBA HRA is a tax-exempt trust organized under IRC 501(c)(9), as authorized by MCA 2-18-13 and ARM 2.21.1901 - 2.21.1941.
As an IRC 501(c)(9) tax-exempt trust, the Montana VEBA HRA provides for eligible employees in a work unit to participate through a voting process to establish the group, and then through annual votes to maintain the group structure, change that structure or to disband the group. Employees are prohibited from making an individual decision to opt in (or opt out of) a Montana VEBA HRA group when they separate from service. An employee cannot choose between non-taxable benefits (employer contribution of accrued leave to the Montana VEBA HRA) or the cashing out of accrued leave at termination of employment.