Total Financial Group

[Snoman]

The IRS and FBI raided the TTFG Corporate office (and principle owners home) and seized all property and assets associated with the business and principle owners on January 10th, 2017.

 

[scagnt83]

Not surprised.

Here are a few articles that have surfaced about them (not the recent supposed events mentioned in the other post).

SHEBOYGAN – Following several red flags about legality raised by an outside opinion, City of Sheboygan leaders have shot down any further consideration of a new health costs reimbursement plan by Total Financial Group, whose representatives have been in talks with the city for a year now.

In July 2015, Mayor Mike Vandersteen suggested exploring a medical reimbursement plan called a Classic 105 plan. Members of the Salaries and Grievances Committee said they would revisit the issue when members of the group pushing the plan came to Sheboygan.

In March, Total Financial Group advisor Rickey Gooch met with the committee in person to pitch the plan, which he said allows employers to reduce FICA contributions when an employee funds their own Medical Reimbursement Account.

The employee takes out a loan to fund the contribution, which is paid back with the savings the employee gets on their paycheck given a small tax contribution. The loan itself is guaranteed through the purchase of a life insurance policy.

Still cautious about taking any action, the city sought some guidance on whether the plan was legally sound. An opinion from consultants at the Massachusetts-based Phia Group stated the Classic 105 Plan could be out of compliance with various regulations and even federal law.

The opinion was discussed at the Salaries and Grievances Committee meeting on July 25.

“I think it is fair to say that there’s a wide range of concerns,” said City Attorney Charles Adams. “The serious issues come especially in the tax and insurance area, but that’s not to say there aren’t issues with regard to ERISA [Employee Retirement Income Security Act} and the Affordable Care Act.”

RELATED:Sheboygan questions legality of health costs plan

RELATED:City to pay consultant to weigh in on health plan

According to the opinion, the Classic 105 offered by Total Financial Group risks compliance issues with tax and state insurance.

For example, Total Financial Group would take approximately $1,400 pre-tax per month from an employee and issue $1,000 back to the employee in the form of a loan which is secured by a credit life insurance policy.

The owner of the policy -- a third-party investor -- essentially loans the plan participant a portion of the policy each month. Total Financial Group says that the loan is not a reimbursement or advance for medical expenses and is really just a loan.

Interest on the loan is paid by Total Financial Group from the fees already paid into the program. The program is renewed each year, and any money left over in the employees medical reimbursement account is kept by Total Financial Group.

“Total Financial Group makes no mention of what happens to the money that employees contribute to their medical reimbursement accounts at the end of the year,” the opinion read. “IRS regulations require the unused portion of a medical reimbursement account to be used for health care. Does Total Financial Group keep this money? If so, it could be a violation of federal law.”

In addition, Total Financial Group realizes that neither 105 plans nor 125 plans can meet Affordable Care Act requirements on their own and thus requires groups to establish an ACA-compliant employer-sponsored group plan.

“The IRS has made it clear that an employer may not either directly pay premiums for individual policies or reimburse employees for individual premiums on either an after-tax or pre-tax basis,” the opinion read. “If the Classic 105 does allow employers to reimburse or directly pay for individual premiums, that arrangement could be out of compliance with federal law and lead to penalties imposed upon the employer.”

In addition to the Phia Group’s opinion, a local insurance company reached out to the mayor and other city leaders and sat down with them to independently offer the same advice and raise the same concerns.

Given these red flags, among others in the written opinion, Vandersteen, Adams, City Administrator Darrell Hofland and Director of Humans Resources and Labor Relations Sandy Rohrick recommended discontinuing consideration of the program. The Salaries and Grievances Committee raised no issue with the decision.

Reach Leah Ulatowski at 920-453-5134, [email protected] or @Leah_Bekah on Twitter.

City leaders abandon consideration of health costs plan



Anyone with any real experience in this industry realizes what a scheme it really is.

 

[Snoman]

Your "2nd example" involving Lindberg Road Church of Christ is completely unrelated to Total Financial Group out of Louisiana. That is a different organization and different scheme.

 

[scagnt83]

Your "2nd example" involving Lindberg Road Church of Christ is completely unrelated to Total Financial Group out of Louisiana. That is a different organization and different scheme.

I was under the impression it was the same outfit just rebranded in a different state. Either way, I removed it. Especially since the first article is what they have been pitching as the super secretive "Classic 105 Plan".

 

[Pittsburgher17]

Just want to input some first hand information - Our company signed up for this plan 18 months ago. Several employees reimbursement forms were returned without payment this month. We were notified by our company that Total Financial Group was "closed due to audit" and reimbursements would not be made until further notice. My fellow co-workers are out thousands of dollars in which they were promised would be reimbursed.
What reputable company closes due to audit?
Feel free to hear their "Closed so they can give full attention to audit" message at 985-888-1930

 

[alexhon]

good example i appreciate you

 

[Key2Success]

I was under the impression it was the same outfit just rebranded in a different state. Either way, I removed it. Especially since the first article is what they have been pitching as the super secretive "Classic 105 Plan".

Whoa? Super secret? Then how has the new administration recently become aware of it? Let's see....are you still trolling something that you know absolutely nothing about Scagnt??? Or, be honest....Does this company owe you money? Were you fired for performing some illegal activity or lack of production perhaps?

 

[scagnt83]

Whoa? Super secret? Then how has the new administration recently become aware of it? Let's see....are you still trolling something that you know absolutely nothing about Scagnt??? Or, be honest....Does this company owe you money? Were you fired for performing some illegal activity or lack of production perhaps?

I would never affiliate myself with a "program" like that or a BGA such as that. I sell products that are legal and approved by regulators.

As I explained in the employee benefits section, over the past 2 years, Ive been approached by several local business owners who asked me to vet this scheme. Once exposed, they all told you guys to take a hike. I think one even reported your firm to the EBSA and SC DOI.

These guys do a good job breaking down this scam: https://www.hcwbenefits.com/is-the-classic-105-plan-compliant-with-federal-law/

 

[Key2Success]

I would never affiliate myself with a "program" like that or a BGA such as that. I sell products that are legal and approved by regulators.

As I explained in the employee benefits section, over the past 2 years, Ive been approached by several local business owners who asked me to vet this scheme. Once exposed, they all told you guys to take a hike. I think one even reported your firm to the EBSA and SC DOI.

These guys do a good job breaking down this scam: https://www.hcwbenefits.com/is-the-classic-105-plan-compliant-with-federal-law/

More lies and misinformation Scagnet? Facts MrTroll...DEAL IN FACTS!!! The heading should give you HINT!!! It poses questions to get simple, uninformed individuals such as yourself to ASSUME! Being a competitor (yes, they are well aware of the validity), they are very careful as to not present anything as fact (so as to avoid litigation no doubt). So keep trolling Scagnt.....we're still waiting for facts not opinions! I'm truly amazed that you could sell anything....but you'll certainly buy just anything.

 

[scagnt83]

https://www.hcwbenefits.com/is-the-classic-105-plan-compliant-with-federal-law/