We provide group health and disability insurance, a SIMPLE (like a 401(k) but better), deferred income, and bonuses. There's not enough demand for us to have dental or optical or cancer or life insurance yet, but we could get it later if needed. We don't need an HSA because we already have a 100% health expense reimbursement plan. And now we have Direct Deposit. Remember that "we" refers to RMPCS/RMPDP/RMPDE, and "our client" refers to RMPCP/RMPTS or other clients of RMPCS.
Our §408(p) SIMPLE-IRA allows totally independent deferrals up to $9K/year in 2004, $10K/year in 2005; even more for those 50 or over. These limits tend to increase annually. The SIMPLE has the advantage of contributions not being limited to 15% or even 25% of your income. You can contribute the full $9K/year even if you only make $10K/year. We set up our new plan using the IRS 5304-SIMPLE form which allows you to choose your own financial institution, e.g. mutual fund family, brokerage, or whatever, regardless of what our other consultants choose. This flexibility, plus being able to contribute what you want regardless of how much others contribute, plus not being limited to 25%, make the SIMPLE much better than a 401(k) for many people. With the other options mentioned on this page, you can contribute even more as you earn more.
Clients may also have their own plans and other benefits, independently of the company as a whole. Individual members who are also employees of clients can even participate in both plans. We can even help you set this up. Those without benefits are encouraged to participate in our benefit program, of course. Combined total contributions to all plans are subject to various limits depending on the plans chosen. However, we may be able to set these up to allow you to contribute over $40K/year!
We also have a non-qualified deferred income plan, which is a higher-risk plan but has much more flexibility and virtually no contribution limits, and it currently accrues over 12%/year interest. We're also assigning Bonus Points (similar to profit sharing plans, stock purchase or stock bonus plans, etc.) to reward our consultants for their hard work over the years; this can help you make even more money as we grow. You can even buy Bonus Points by using our deferred income plan. Those who have been with us the longest will have the opportunity to benefit the most, so the sooner you join us, the better deal you'll get in the long run.
Besides the insurance mentioned below, we have General Liability insurance, and we also carry Worker's Compensation for RMPCP/RMPTS and similar clients with similar needs (high-risk clients must get their own WC). We do not carry Professional Liability (Errors & Omissions) insurance, because we don't need it; that's something our clients would get if they want it. RMPCP/RMPTS does carry it for some of its Divisions that need it.
We've made a special arrangement with another company to provide our group with access to a group medical insurance plan covered by Blue Cross / Blue Shield. The other company acts like a PEO to provide this plan but the arrangement is much simpler and cheaper than a typical PEO. The beauty of this deal is that participation is optional, and there are no health questions! And since it's a group plan, it has the usual HIPAA protections against exclusion of pre-existing conditions. It pays 80% in network or 70% out of network, after a $1,000 deductible, and has a prescription drug card. New personnel become eligible the 1st of the month after they've been working full time through us for 30 days.
This is provided by our internal PEO, RMP Diversified Employees LLS, which also interfaces with the company that provides our group health insurance plan. Those using our group health insurance plan are automatically covered by our health expense reimbursement plan, which makes the premium payments pre-tax. Others become eligible to join our reimbursement plan after a few months (the details are still being worked out). The plan allows payments for most health-related expenses to be deducted via our expense report, just like other business-related expenses.
We have a group LTD plan that pays 60% of income earned through us (up to 60% of $10K/month) beginning 90 days after the accident or illness causing the disability. New personnel are required to participate beginning the 1st of the month after they've been working full time through us for 60 days. Of course it's much cheaper than health insurance. As normal with disability insurance, the premiums are paid with after-tax money so that the payouts (if ever needed) will be tax-free.
Please select for more information: