You likely are aware that a majority of companies struggle with ADP/ACP testing every year.

• 95% of US companies have a retirement plan.
• 90% of these are 401(k)’s.
• 70% of these have ADP/ACP testing difficulties, preventing highly compensated employees (HCEs) from fully participating in their 401(k)’s.

Where do you stand with your 401(k) plan? Have you considered Safe Harbor? Do the costs of Safe Harbor make it an unrealistic alternative for your company? Have you ever had to, or do you currently refund contributions back to your HCEs? Are you limiting HCE contributions? Would you like to permanently eliminate the possibility of ever failing your compliance tests in the future?

LBP 401(k) Plus enhances your current 401(k) plan and provides the following key benefits:

• Existing 401(k) plan stays in place
• Permanently ends non-discrimination testing issues
• Allows maximum participation by HCEs
• Easy to administer and costs a fraction of a “Safe Harbor” strategy

Please take a moment to review the brief presentation available at the following link to learn more about this simple, yet powerful program:

Please feel free to contact Juanita Brown for more information: Juanita@gardnerbrownassociates.com or toll-free 877-930-1100.

Contained in the 2006 Pension Protection Act is a provision granting non-qualified deferred annuities the same tax-free benefit, when used for long term care expenses, that has long been granted to qualifying life insurance policies, such as MoneyGuard. This provision takes effect January 1, 2010. It is an enormous gift for those with low basis in annuities that won’t be needed for income.

Long term care is a growing concern for the government. As of 2005, Medicaid shouldered 49% of the expenses. However, Medicaid only steps in when the patient is impoverished. Most financial planning clients do not plan for impoverishment. This provision of the Pension Protection Act is being offered by the government to encourage people to use their own money for their care, in exchange for which the taxes due on the built up gain will be forgiven.

The vehicle cannot be any ordinary annuity, however. Only Long Term Care Qualified annuities will receive this treatment. These annuities conform to state long term care rules and regulations. They are also underwritten, so someone who is infirm will not be eligible for this program, and will not be able to take advantage of the tax-forgiveness.

Gardner Brown is pleased to represent such an annuity now available for purchase. One America, a newly named combination of State Life and Golden Rule, is approved for sale in most states, and is the only currently approved product in CA. There will be others coming on line in 2009, and we will represent the better ones of them. However, since Golden Rule has a long familiarity with long term care provisions, I am confident that they won’t jump out of the market like some companies did early on with regular long term care products…remember Aetna?

At the end of 2007, more than $2 TRILLION was invested in deferred annuities. According to Gallup’s 2005 survey of non-qualified annuity owners, age 64+:

• 81% surveyed intend to use their annuity as a financial resource to avoid being a financial burden on children.
• 74% intend to use their annuity as an emergency fund in the case of a catastrophic illness, or for nursing home care.

So, if you have clients with non-qualified annuities out of surrender charges, with a low basis, who also have not looked after their long term care insurance, here is an opportunity to solve a major problem with the government’s blessing of tax relief.

Please take 3 minutes to view this presentation.

Then contact Juanita Brown for more information: Juanita@gardnerbrownassociates.com or toll-free 877-930-1100, Option 2.