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Prime Choice

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PRIME-Choice©

Solve your “Constructive Receipt” issues on
payments of retiree accumulated Leave.

As an employer, you want to provide your retiring employees with more options on how they receive their accumulated leave benefits… Some may want to take the full amount in a cash payment… Others may prefer to leave money on account to pay for health insurance premiums and out-of-pocket medical expenses “tax-free” during retirement.

The Problem is… if you allow your retiring employees to make the choice…the Internal Revenue Code that governs Constructive Receipt deems the benefits taxable regardless of which option is chosen. To solve this issue we have developed a Plan called: PRIME-Choice©

PRIME-Choice© is a written benefit plan that lets you provide options without taxation of the health benefit.

Here is how it works:

At retirement, you convert the accumulated sick leave payment into a mandatory contribution utilizing one of the following: IRC Sec 401(a)/403(b) plan or a Post Retirement Medical Expense Trust –
PRIME-Plan(trust)©.

This determination process is made by the employer or its agent through an “exit interview” and is based upon the retiring employee’s needs at retirement… Therefore, no matter which option is decided, the Plan that best suits the needs of each particular retiree is utilized…. You and your retirees will see significant advantages through PRIME-Choice©.

PRIME-Choice© Option #1 – Mandatory Contribution to a 401(a) or 403(b) plan

For the Employee

  • No FICA taxes
  • Complete liquidity
  • Opportunity to defer federal and state income tax options
  • No sales or surrender charges

For the Employer

  • No FICA contribution
  • No cost to implement

PRIME-Choice© Option #2 – Mandatory Contribution to PRIME-Trust

For the Employee

  • No FICA taxes
  • Tax free health insurance benefits & expenses
  • No federal or state income tax on benefits
  • No sales or surrender charges

For the Employer

  • No FICA contribution
  • No cost to implement

You and your retiring employees will agree: Providing “Choice” between tax-free health benefits or a tax advantaged cash payment benefits everyone.

Save you and your employees from unnecessary taxation with PRIME-Choice©.

For more information Contact: Precision Retirement Group, Inc.

National: 800.238.9101

West Coast: 800.369.9461

East Coast: 888.458.3902

Copyright © 2009 Precision Retirement Group, Inc. All rights reserved.
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