CAFETERIA (Section 125) PLAN

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="039285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>LIFE, DISABILITY, MEDICAL, MEDIGAP, DENTAL, LTCI and ANNUITIES </B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="LIFE, DISABILITY, MEDICAL, MEDIGAP, DENT"><U><B>home</B></U></A></div> <div>                                                   </div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="038d2c00dkelyh.png"> <div> W. Forrest Veal, CLU</div> <div> P. O. Box 700222</div> <div> Dallas, TX 75370</div> <div> 972 250 6516</div> <div> 1 888 845 8325</div> <div> Fax 1 775 542 0808</div> <div> E-mail - vealbs@juno.com</div> <div> <A HREF="http://www.125plan.com" TARGET="_top" TITLE="http://www.125plan.com"><U><B>Free 125 Newsletter</B></U></A></div> <div> Click on Free Newsletter and include Registration Code #25168 when completing reguested information<B>  </B></div> <div> <A HREF="http://www.ebia.com/publications/calculator.html" TARGET="_top" TITLE="http://www.ebia.com/publications/calcula"><U><B>Free 125 Plan Tax Savings Calculator</B></U></A></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>CAFETERIA (Section 125) PLAN</I></div> <bR> <div> Enacted in 1978, Section 125 of the Internal Revenue Code allows employees to choose between <B>taxable</B> income and <B>tax free</B> benefits. Tax free means the cost of the chosen benefits are deducted before taxes. This reduces both employer and employee FICA and employee income taxes.</div> <bR> <div> <B>Tax free</B> benefits may include premiums for group medical, dental or life insurance and/or qualified voluntary insurance plans and/or Flexible Spending Accounts <B>(FSA).</B></div> <bR> <div> <B>Flexible Spending Accounts </B>may reimburse participant's qualified out of pocket costs for medical, dental or vision costs and/or dependent care expenses and/or non-payroll deducted qualified insured premiums.</div> <bR> <div> <B>WHY HAVE A CAFETERIA PLAN?</B></div> <bR> <div> <B><IMG BORDER="0" SRC="Wing0a73007700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Employees save money! </B> Participating employees save from 22% to 40% or more of the cost of the tax free benefits they select. Exact savings depend on the employee's federal income tax bracket and any state income taxes.</div> <div> <B><IMG BORDER="0" SRC="Wing0a73007700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Employers save money!  </B>Participating employers save <B>7.65%</B> (FICA) on all employee contributions and may have additional savings on SUTA and FUTA.</div> <div> <B><IMG BORDER="0" SRC="Wing0a73007700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Benefit plans work better!  </B>Providing employees with benefit choices increases the employee's impression of the value of plan benefits.</div> <div> <B><IMG BORDER="0" SRC="Wing0a73007700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Benefit costs can be reallocated!  </B>Tax free premiums can allow employees to pay a larger share of a plan's costs without reducing employee's take home pay.</div> <div> <B><IMG BORDER="0" SRC="Wing0a73007700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Hiring new employees can be easier!  </B>Almost all large (and many small to medium sized) employers now have cafeteria benefits. Potential  employees often look for cafeteria benefits. Employers without such a plan are not competitive in the job market.</div> <bR> <div> Compliance and Administrative Services for a Qualified Plan are available from <B>Flexible Benefit Group, Inc.,</B> a professional Third Party Administrator, with E&O and bonding. <B>FBG</B> has been providing Cafeteria Plan services since 1987 to clients located throughout the United States.</div> <bR> <div> <B>FBG </B>provides a "total concept" plan. Everything you need to set up and operate a qualified Section 125 Cafeteria Plan is included in the FBG package. To receive a Proposal detailing the services and the applicable fee for your Company, you may click <A HREF="id27.htm" TARGET="_top" TITLE="CAFETERIA PLAN PROPOSAL REQUEST FORM"><U><B>"here"</B></U></A> to go to a Cafeteria Plan Proposal Request Form to print, complete and fax to Flexible Benefit Group, Inc.</div> <bR> <div> <B>To return to the Table of Subjects, click on "home" in the above border.</B></div> </td> </tr></table></body>