What is a 501 c 9 plan?

A 501(c)(9) plan refers to a type of tax-exempt organization under the Internal Revenue Code, specifically designed for voluntary employees' beneficiary associations (VEBAs). These plans provide benefits such as health care, life insurance, and other forms of welfare to members, typically employees of a company or organization. Contributions made to a 501(c)(9) are tax-deductible for the employer, and the benefits provided to members are generally tax-free. These plans are often used as part of employee compensation packages to enhance workforce benefits.