Creating the total benefit portfolio piece by piece

TTFG History Established in 1992 Thousands of clients nationwide No complaints with: Better Business Bureau Chamber of Commerce Insurance Commissioners from any State With the amount of volume we generate, this has been quite an accomplishment WE DO WHAT WE SAY WE ARE GOING TO DO AND WE DO IT WHEN WE SAY WERE GOING TO DO IT!!

Times are Changing!! Are you prepared for the Changes? With changes in the healthcare arena (PPACA) more companies are looking for ways to keep up with the demands the federal government has placed on them. Fines (Taxes) for no insurance is right around the corner Health Insurance rate increases of 50% or more Cutting contributions to HSA, FSA and HRA accounts Regulations changing every other day 80 new taxes embedded in the new law So for the million dollar question, what are we going to do?

CLASSIC 105 EMPLOYEE WEALTH BENEFIT PLAN Here at TFG we have noticed a trend of companies shifting to 105 plans. Why? No limitations on contributions, like HSA, FSA and HRA accounts will face. Convert more income to benefits which creates more tax savings Higher protection for Out of Pocket expenses Lower premiums on group health plans Simplicity of the plan Peace of mind created from securing the future ** Over 50% of American Businesses use 105 accounts today

YOU ARE THE ONE IN CONTROL OF YOUR COMPANY EMPLOYER BENEFITS Top of the list is tax savings from the matching contributions to FICA Average savings currently per W-2 employee is $400 per year!! HOW MANY EMPLOYEES DO YOU HAVE? Flexibility would be next on the list No reason to change health carriers, use whomever you want to use. Ability to go with a higher deductible so you can lower premiums Carve outs (<25%) or all employees (>70) participation Freed up tax money allows you to get more employer paid benefits for your employees if that is what you are looking to accomplish. Use whatever payroll company you want to do your payroll and TFG will reimburse you up to $20.00 per employee per month on the plan. ** All administration fees are a Section 162 business tax deduction saving you MORE money! Companies that have utilized the Classic 105 program have averaged up to 2.65%, or MORE in their pocket. ** Could vary depending on current pre-tax deductions. YOU ARE THE ONE IN CONTROL OF YOUR COMPANY

WHAT PARTICIPATING EMPLOYERS ARE SAYING ABOUT TFG I can finally start paying myself a salary John from California First time I have ever had all of my employees happy about their benefit package Walter from Kansas I never dreamed I would save this much money on a 105 plan, I wish I would have done it years ago. Thanks TFG Cynthia from Texas I wasn’t going to go with the coverage when I saw this a year ago, but when I found out two of my associates in the industry had been on the plan and loved it I changed my mind. Now almost every week I have another employee comes into my office and tells me thanks for getting the Classic 105 Plan. I’m saving money and I have happy employees, what more could I ask for. Thank You Evan from New Jersey

HAPPY EMPLOYEES CREATE A BETTER WORKSITE ENVIRONMENT!! EMPLOYEE BENEFITS Tremendous tax savings through Section 125/105 plans Reimbursement accounts that pay 75% of eligible un-reimbursed out of pocket expenses Can get lower premiums with higher deductibles Peace of mind from fear of medical bills More benefits in their employee packages Most employees experience an increase in spendable income HAPPY EMPLOYEES CREATE A BETTER WORKSITE ENVIRONMENT!!

HOW DOES THE CLASSIC 105 WORK You are required to have a 125 (POP) in place-which is included by TTFG You deduct 105 contributions from the income of the employee and convert them to benefits [Section 106(a)] This will lower the taxable income of the employee Employee will submit claims to TFG and get reimbursed 75%(based on the schedule of benefits) of their OOP expense for medical bills [Section 105(b)] these reimbursements are non taxable as long as they are qualified [Section 213(d)] and for dependents [Section 152].

ERISA SECTION 3(1) The plan qualifies under Employee Retirement Income Security Act of 1974 (ERISA) under employee welfare benefit plans because: The program provides benefits systematically based on its schedule of benefits and is considered a plan, fund, or program within the means of ERISA [Section(3)]. Employer is required to contribute to the program and maintain a [Section 125] Program provides medical benefits as required by ERISA Program is offered to all of the employees and dependents. This indicates that the program is maintained by the employer and does not fall under the Safe Harbor exception to ERISA for benefit plans not subject to ERISA. See department of Labor Regulation 2510.3-1(j). The Program satisfies the requirements of Title I of ERISA and is in compliance with all mandates of the Patient Protection and Affordable Care Act (PPACA) Healthcare Reform.

THIS PLAN IS EQUAL TO ALL EMPLOYEES AND IS NONDISCRIMINATORY SECTION 105 (H) This section of the IRC requires the program to be nondiscriminatory In general. A self-insured medical reimbursement plan does not satisfy the requirements of subparagraph (A) of paragraph (2) unless such plan benefits: 70% or more of all employees or 80% or more of all of the eligible employees Carve out plan of less then 25% of the employees Not to be discriminatory in favor of highly compensated individuals THIS PLAN IS EQUAL TO ALL EMPLOYEES AND IS NONDISCRIMINATORY

WHAT WILL TOTAL FINANCIAL GROUP DO FOR YOUR COMPANY? Educate the owners, Officers, HR and Controllers on how the plan operates. Provide all plan documents required to be in compliance with all Government departments such as the IRS and Department of Labor. Provide offsite backup documents in case originals are lost. (Audits) Process all claims and maintain all 105 accounts for each employee. Provide all information needed for all forms needed to be filed such as Form 5500 for companies over 100 employees Assist with enrollment or do complete enrollment as desired by the company Choice of online, onsite or reverse enrollments are available Professionally answer all employee questions at the time of enrollment Customer Service throughout the life of the Agreement Years of experience and a great track record for success Reimburse company on invoice of payroll company $ 20.00 per employee on the plan.

WHAT IS THE COST TO THE EMPLOYER The Employer is required to contribute towards the Employee Welfare Benefit Plan. The minimum contribution per plan documents is 5% by the employer. The reason an employer uses a plan of this nature is the savings on the matching FICA of the employees. Matching FICA is 7.65% of the employees taxable income The 105 contribution lowers the taxable income of the employees BOTTOM LINE IS NOT ONLY DOES IT NOT COST YOU MONEY, BUT YOU PAY LESS MONEY OUT THAN YOU DID BEFORE, YOU MAKE A NICE PROFIT.

SIDE BY SIDE COMPARISON WITH TFG

TOTAL FINANCIAL GROUP ANY QUESTIONS? Overview of the program: Creates tremendous savings on taxes for the employer and employee, win/win. Creates a vehicle for medical reimbursements for employee Creates better cash flow through the hard times (Health Issues) Frees up money for both employee and employer to purchase more benefits if desired- Flexibility to chose any agent and any insurance carrier ANY QUESTIONS?