Transcript What are we going to do? - Total Financial Group | ttfg.org

Established in 1992
Thousands of clients nationwide
No complaints with:
BBB
Chamber of Commerce
Insurance Commissioner’s Office from any
state
We do what we say we are going to do and
we do it when we say we are going to do it.
Gemini/ Endeavour
With changes in the Healthcare arena, more companies are looking
for ways to keep up with the demands the Federal Government has
placed on them.
Such as:
 Companies with 50 or more employees must provide healthcare or
they will be fined.
 Insurance companies have no lifetime limits anymore and in the near
future will have to cover all pre existing conditions, the cost of the
premiums are going sky high.
 Now they are talking about cutting deductions for Cafeteria plans as
well as contributions to Health Savings Accounts( HSA’s) down even
further.
So the million dollar question is :
What are we going to do?
Gemini/ Endeavour
Here at TFG we have noticed a trend of companies going with a
Section 105 “Defined Benefits Plan” for the following reasons:
 You do not have the limitations of the Defined Contributions Plan.
 No need for a use it or lose it plan like an FSA.
 Pass tax liability to administrator for the pre- tax amount
 Because it is a self funded prepaid benefit program, the
administrator will provide a cash benefit to each employee to cover
all out of pocket expenses.
 Employee will control what Health Carrier they use to reinsure the
Administrator, such as Blue Cross, UHC and Cigna… The plan must
have a Max out of pocket of $10,000.00 or less.
Requirements of Section 105
Internal Revenue Code Section 105(h)
(3) Nondiscriminatory eligibility
classifications.
(A)
In general. A self-insured medical reimbursement plan does not satisfy
the requirements of subparagraph (A) of paragraph (2) unless such plan
benefits;
(i)
70 percent or more of all employees, or 80 percent or more of all the
employees who are eligible to benefit under the plan if 70 percent or more of
all employees are eligible to benefit under the plan; or
(ii)
such employees as qualify under a classification set up by the employer and
found by the Secretary not to be discriminatory in favor of highly
compensated individuals.
This plan is equal to all
employees and is
nondiscriminatory
Gemini/ Endeavour
The company provides plan documents (required) for
a Section 125 POP so benefits and premiums will be
deducted pretax.
• Lowers taxable income for the employee
• It will also lower the matching tax contributions for the
company.
• By using a 105 combined with a 125 we maximize tax savings
to create a benefit bank for the employee
Example of Tax Savings
If you have an employee (single, no dependants) who makes
1,000.00 a week and the health insurance premium is 430.00 a
month;
 If you use a 125 POP only, you would only be able to pretax
100.00 per week leaving the employee with a taxable income
of 900.00.
 However on a 105 Self Funded Defined Benefits plan, along
with the 125 POP with an insurance carrier that has 10,000.00
or less out of pocket, the pretax deduction would be
approximately 300.00 a week (100 for premium and 200 for
max out of pocket) and the taxable income will be only 700.00
a week.
As you can see this plan will give you much more tax savings than what you
have been using in the past.
BENE$MART
 A company big enough to make a difference and still small
enough to care.
 They have been around since 1998 and have a remarkable
reputation in the Administration arena.
 With ownership having 30 years Actuary and Product
development experience, it was an easy choice for TTFG to
pick them over the competition.
 The best benefits package, and ultimate customer service,
which is head and shoulders above the industry.
“What is the cost”?
The truth of the matter is it will save the company money.
 When we lower the employee taxable income it also lowers the matching
contributions of the company.
 The money saved in matching contributions will be sent to Bene$mart as
your fees. Also a small amount of money will be transferred to you from
the employee’s benefit bank to contribute toward the fees.
 Bene$mart fees are 100% tax deductable.
 Example: If you where sending 1000.00 a week to the IRS for payroll tax
and we lower that to 500.00 then you will send 500.00 to the IRS and
400.00 to Bene$mart. Because the 400.00 to Bene$mart is a tax
deduction, in a 25% tax bracket you would save another 100.00 from
what you where paying before.
External Benefits
Life insurance premium will be provided for
all of the employees that participate in the
plan.

Option A
$110.00 per month for the employee
$55.00 per month for the spouse
$25.00 per month per child
Option B
$55 per month for the employee
$27.50 per month for the spouse
$12.50 per month per child
Why did we chose life insurance as an additional benefit:
Surveys show that over 75% of the American workforce feel they do not have adequate
amounts of life insurance in force.
Why are they going to give you these benefits?
Because they want to have the best benefit package in the industry. They want this to
be the easiest decision you have ever made for your company. Their motto is make
smaller profits and give more benefits and they will make it up by doing larger volume.
Why don’t we look at an example of a side by side comparison of
what you have in place right now and what we can do for you.