Services

Please choose one of the services below to see more information.

Russell C Jacobs, III and Carl Coolidge are registered representatives of and offer securities through MML Investors Services, Inc. (Supervisory Office, South Tower Suite 400, 3333 Peachtree Road, Atlanta, GA 30326. 404-261-8900)

"The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel."

401(k)


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A 401(k) plan is a qualified deferred compensation plan which enables you to save money, lower taxes, and invest in your financial future. Under a 401(k) plan, your elective contributions are made on a before tax basis; that is, the amount deferred will be excluded from your taxable income. This may currently lower your taxes. The following are some advantages of our 401(k) plan.

  • Elective deferrals are voluntary and the amount you contribute is up to you. (Federal law limits the deferral to 25% of salary or $14,000, whichever is less for 2005).
  • Deferrals are made before tax; therefore, you pay less in Federal and State income taxes
  • Earnings and income are not taxed until the money is distributed from the plan. When you receive your retirement benefit you may be in a lower tax bracket than you are currently.

COBRA Administration


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"COBRA" stands for Consolidated Omnibus Budget Reconciliation Act of 1985.

COBRA is the federal health care continuation law. COBRA requires that if an employee or other "qualified beneficiary" loses employer-provided health coverage due to termination of employment or another specified "triggering event," the group health plan must offer continued health care coverage to the qualified beneficiary. The qualified beneficiary may be (and typically is) required to pay the full cost for the coverage.

COBRA coverage has limited duration. In most cases, the maximum COBRA period is 18 or 36 months from the date of the qualifying event.

COBRA effects groups of 20 OR MORE EMPLOYEES. Employee count includes all full and part time employees on the payroll.

Dental Insurance


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Our agency is very active in the group and individual dental insurance marketplace. Whether you are investigating dental insurance for an individual, a group plan for a small start up, or a partially self-funded multi-state corporate group plan, our agency is prepared to assist you. We can help you evaluate your needs, survey the marketplace, prepare side by side plan and price comparisons for your review, and then help you implement the plan(s) that you determine best meet your objectives.

Estate Planning


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The federal estate tax is imposed on estates that exceed a certain amount in assets. This amount is being increased each year through 2006. Currently, an estate exceeding $675,000 in assets is subject to the federal estate tax. This dollar amount will have increased to $1,000,000 by 2006.

The federal estate tax begins at a rate in excess of 30%, and increases to 55% of your total taxable estate. For instance, an estate with $1,000,000 of net taxable assets should expect to pay $115,000 in estate taxes. An estate of $5,000,000 will owe over $2,000,000.

How are death taxes paid?

There are several methods which an estate can use to pay the death taxes. The executor can borrow the cash. This of course only defers the problem. The taxpayer may pay in cash. Of course, people rarely accumulate large sums of cash. Even if the taxpayer has accumulated this large amount of cash, they will have to forego other profitable investment opportunities. The taxpayer can also liquidate current investments. But what if the market is "down" and they don't want to sell their positions? Also, selling investments that have substantial growth might make the taxpayer subject to other taxes such as capital gains, or income tax. The executor may also liquidate other assets. Real estate or other assets can be liquidated, however they may be sold at a financial loss, or the asset may have sentimental value to the heirs. The final way to fund the estate tax bill is from life insurance proceeds. This is the generally preferred way to pay for death taxes for several reasons: the heirs almost always get back more than was paid in; the proceeds may be free of estate taxation; it avoids many problems of liquidating current assets; the proceeds are usually not subject to probate; life insurance is not subject to income tax for beneficiaries; the payment benefit is prompt; life insurance provides cash for a predictable need which will arise at some unpredictable moment.

What are some examples of good and bad estate planning decisions?

When John D. Rockefeller, Senior died he had a gross estate of $26,905,182. He did not implement some basic estate planning tactics and his heirs wound up paying over $17,000,000 in estate taxes. This works out to roughly 64% of his entire estate.

It seems that Mr. Rockefeller's son learned from his father's mistakes. He planned properly and when John Jr. died he left behind an estate of $160,598,584. Because John Jr. had the proper estate planning team assembled, he owed a tax of only $24,965,954. This breaks down to only a 16% taxation rate.

Life Insurance


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You need life insurance if anyone depends on your lost income. It solves many problems in both personal and business situations.

Personal needs:

If you are a young parent, you may need life insurance on your own life to enable a surviving spouse to raise the children. When you are older, you may need life insurance if you are financially responsible for an aging parent or want to provide funds to take care of final expenses, debts or taxes.

A rough rule of thumb suggests buying protection equivalent to FIVE TO EIGHT TIMES YOUR ANNUAL INCOME. Your needs may vary according to your financial assets and liabilities.

Life insurance can solve your heirs' immediate and long-term needs.

Immediate needs would include: funeral expenses, unpaid medical bills, debt and taxes, as well as the time to readjust to a new life-style.

Long-term it will help provide: for the maintenance and care of a disabled child or elderly parent, college expenses and, in general, providing the means to your heirs to live the life to which they are accustomed.

Business Needs:


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Life insurance is often the solution to:

  • Replace a key person and provide the funds to cover the costs of locating and training a replacement.
  • To fund Buy/Sell agreements.
  • To provide collateral for business loans, etc.

There are two types of Life Insurance Term and Permanent

Term Life Insurance

It provides protection for a specified period of time, typically from one to 30 years. It pays a death benefit only if you die during this term. Some policies can be automatically renewed at the end of the coverage period, and some can be converted to permanent insurance without need for a medical exam.

-- Advantages of term policies include:

More insurance for less money because premiums are lower than those for permanent insurance, and you can afford to buy more coverage when you need it the most.

Specified periods of coverage make term insurance ideal for covering specific short-term financial needs such as a college education or a mortgage loan.

-- Disadvantages of term policies include:

Premiums increase at each policy renewal date, becoming very expensive later in life.

There is no savings feature (cash value), only a death benefit if you die while the policy is in force.

You could outlive your coverage, because term insurance is generally not renewable after age 70 or 75. State laws vary on this issue, so you should check with your state department of insurance.

Permanent Insurance

It provides lifelong protection as long as you continue to pay premiums. The premiums are based on your age at the time of purchase and generally remain level; they do not increase with age.

Because premiums remain level, permanent insurance is more expensive than term insurance. But permanent insurance accumulates cash value, which may be refundable upon surrender of the policy. While the policy is in force, cash values can be borrowed against or used to pay premiums.

There are four basic types of permanent Insurance:

  1. Whole Life
  2. Universal Life
  3. Variable Universal Life
  4. Survivorship Universal Life

The most suitable type of life insurance coverage is determined during the planning process, taking into account our clients' goals, objectives, time horizon and risk tolerance.

Key things you should know about life insurance:

Life insurance proceeds are generally income tax free.

The proceeds of many permanent life insurance policies can be used to ease the financial burden of catastrophic illness, terminal illness or long-term care. These "accelerated benefits" may be offered as part of the basic policy or as a rider to an existing policy.

As the holder of a permanent life insurance policy, you may borrow up to the cash value at an interest rate (fixed or adjustable) stated in the policy. Any unpaid interest is added to the loan. Any unpaid loan, including interest, will be deducted from the death benefit.

The cash value can be used to pay premiums for a period of time, keeping the stated death benefit, or it can be used to purchase paid-up insurance in a lesser amount with no further premiums due.

In addition to naming a specific beneficiary to receive the proceeds of your life insurance policy (permanent or term), you should name a secondary or "contingent" beneficiary just in case you outlive the first beneficiary. If there is no living beneficiary, the proceeds will be paid to your estate and have to go through probate proceedings, resulting in a possible delay before your family receives the money. If the proceeds go into the estate, these proceeds may be subject to estate taxes.

On all of the above policies, riders are available at an additional cost to cover: disability waiver of premium, double indemnity for accidental death, guaranteed purchase options, as well as spouse and child riders.

For more information on life insurance, you can access the Life and Health Foundation for Education or the American Council of Life Insurance.

Source: Insurance Information Institute

Long Term Disability


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When faced with an employee who's been disabled, uninsured employers have few options. Do you continue to pay all or part of a salary? Offer unpaid leave? Terminate employment? For an employer and employee, the choices can be devastating. An insured Long Term Disability plan will replace up to 66 2/3% of an employee's income up to the age of 67 in a situation where catastrophic illness or injury exists. A managed LTD plan allows an employer to outsource the difficult decisions surrounding a disabled employee to disability experts. Along with income protection, most disability plans offer rehabilitation and return-to-work services that are essential to the recovery of disabled employees. The goal of Long Term Disability insurance is to financially protect and proactively return disabled employees to a productive life. FAQs

How many people really use their LTD plan?

There is a 1 in 5 risk that a 35 year old will be disabled for 90 days or more before age 65. You are more likely to become disabled than to die during your working years.

How much will LTD cost the company?

The general rule is that a fully insured LTD plan will cost a company about one half of one percent of the company's monthly payroll.

Will an LTD plan pay a disabled employee who returns to work on a part-time basis?

Yes, most LTD plans will pay an employee who is limited from performing all of their job functions, and has suffered a 20% or more loss of income as a result.

What are the most common income replacement percentages?

Most companies implement a plan that replaces 60% or 66 2/3% of an employee's income in the event of a disability. The highest percentage available is 66 2/3%.

Medical Insurance


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Our agency is very active in the group and individual medical insurance marketplace. Whether you are investigating medical insurance for an individual, a group plan for a small start up, or a partially self-funded multi-state corporate group plan, our agency is capable and prepared to assist you. We can help you evaluate your needs, survey the marketplace, prepare side by side plan and price comparisons for your review, and then help you implement the plan(s) that you determine best meet your objectives.

Section 125 Cafeteria Plan

Also known as Flexible Benefit plan, Section 125 plans allow employees to pay for certain benefits with pretax dollars. This allows them to save taxes on insurance premiums, out of pocket health care and or related child or dependent care expenses. Any dollar the employee defers into the flex plan is withheld before any taxes are calculated. The employer will save their portion of social security tax, Medicare, payroll and any other state-required taxes.

The employee may elect to participate in any of three accounts. Federal, State and Social Security taxes are saved on every dollar contributed to the plan.

PREMIUM ACCOUNT allows employees to pay their group insurance premium contributions pretax, increasing their take home paycheck; HEALTH CARE SPENDING ACCOUNT allows employees to use pre-tax monies to cover deductibles, co-pays and other non covered expenses; DEPENDENT CARE SPENDING ACCOUNT allows employees to save taxes on child or dependent care expenses. Cafeteria Plan FAQ

Q. What is a Section 125 Plan?

A. Section 125 is a provision of the Internal Revenue Code that allows employees to pay their share of the cost of certain group insurance benefits, unreimbursed medical expenses, and dependent care expenses with pre-tax dollars. Under this provision, your paycheck is reduced by the amount you elect for the year. That money is removed from your salary structure before Federal Income, State Income, and Social Security taxes are calculated, and placed in a separate account. This results in lower taxable income, and higher take-home pay.

Q. What pre-tax accounts are available to me?

A. There are 4 accounts:

  1. Premium Payment Account
  2. Medical Reimbursement Account
  3. Dependent Care Reimbursement Account
  4. Personal Policy Account

Q. How does a Premium Payment Account work?

A. A Premium Payment Account allows you to have your contributions toward certain group insurance benefits deducted automatically from your paycheck, before taxes are calculated.

Q. What is a Medical Reimbursement Account?

A. Under this provision, you elect an annual amount to be taken out of each paycheck, pre-tax. These funds are available to reimburse you for out-of-pocket medical, dental, and vision expenses, such as deductibles and co-payments. A sample list of eligible expenses is provided in this packet.

Q. What is the Dependent Care Reimbursement Account?

A. The Dependent Care Reimbursement Account allows you to pay for your childcare or disabled adult care expenses while you are working, with tax-free dollars.

Q. What is the Personal Policy Account?

A: The Personal Policy Account allows you to pay for individually owned health insurance plans with pre-tax dollars, such as your Blue Cross, Blue Shield or Kaiser plans. Unfortunately, group insurance premiums from another employer do not qualify.

Q. How do I enroll in the Section 125 Plan?

A: After you have reviewed the plan, and have had your questions answered, you must complete the enrollment form contained in this package. Everyone must sign the enrollment form, even if you are declining participation. To elect to participate in the Premium Payment Account, just check the appropriate box. If you are enrolling in the Medical Reimbursement, Dependent Care, or Personal Policy Accounts, you must elect the annual amount to be withheld from your paycheck, taken in equal increments per pay period.

Q. What is the plan year?

A: Your specific plan year is specified in the Plan Information Summary. It does not have to be the same as the calendar year, and, if this is the first year of the plan, it may be shorter than 12 months. Remember to consider these facts when making your annual elections.

Q. Are there any limits to the amount I can set aside for reimbursement?

A. Every plan is different. Your employer sets the limits on your plan. The maximum and minimum amounts you can elect are outlined in your Plan Information Summary included in this package. For Dependent Care Reimbursement accounts, the law allows you to elect up to $5,000 a year for single, or married taxpayers filing jointly, and $2,500 for married taxpayers filing separately.

Q. Can I make changes in my election or drop out before the end of the plan year?

A. The only time tax law regulations will allow you to make a change is if there is a change in your family or employment status affecting a need for a benefit. Some examples of status changes are: marriage or divorce, the death of a spouse or child, the birth or adoption of a child, or a change in pay or hours of employment for you or your spouse.

Q. Can I switch dollars between accounts?

A. No. The dollars must be used in each account as specified on the election form.

Q. How do I enroll and use the Medical Reimbursement Account?

A. Determine how much you expect to pay this year for medical expenses that are not covered by your insurance plan. These expenses could be insurance co-payments, deductibles, prescriptions, eyeglasses and exams, chiropractic treatments, dental work, orthodontics, lab fees and special education for a learning disabled child. Fill in that amount on the form to be taken out of your paycheck over the year. When you incur an eligible expense, just mail or fax a receipt for the expense, along with a voucher to Pre-Tax Administrators, and we will send you a reimbursement check for that amount.

Q. What if I don�t incur enough expenses within the year to get back the money deposited in my reimbursement account?

A. Unfortunately any dollars not used for expenses are forfeited. This is what is known as the "use it or lose it" provision of Section 125. It is very important to be conservative and accurate in estimating your expenses for the plan year.

Q. How do I enroll and use the Dependent Care Reimbursement Account?

A. Fill in the amount on the enrollment form that you want to have deducted from your salary for dependent care expenses for the year. That amount will be divided equally for each pay period, and deducted from your pay. You must then submit a receipt for those expenses from the provider of the dependent care to Pre-Tax Administrators, along with the voucher. You must include the name and tax identification number of the provider, the dates of service, and the amount paid for the services. The expense will be reimbursed up to the amount that you have accumulated in your account at that time. The balance of expenses will be carried over to future months, and additional payments will automatically be disbursed as funds are available.

Q. Who is considered an eligible dependent?

A: Your dependent(s) under the age of 13, or any dependent who is physically not able to care for himself is considered to be a qualified dependent.

Q. Can I use the Dependent Care Account if I pay a family member for childcare?

A. Yes, but they must be reporting that income on their tax return. If that family member is your own child under the age of 19, you may not claim those expenses.

Q. Are there any other requirements for using the Dependent Care Reimbursement Account?

A. Yes. Your spouse must be working, be a full time student, or unable to care for him or herself.

Q. Can I take tax credit for reimbursed dependent care or medical expenses on my income tax return if I am in this Plan?

A. No. Expenses reimbursed under this plan may not be used when calculating your medical expense deduction or the dependent care tax credit. Because for a few individuals it is sometimes more advantageous to take the dependent care tax credit on your tax return, than to participate in the dependent care reimbursement account, you should discuss which alternative is the best for you with your tax advisor, or the enrollment counselor.

Q. Do I have to file any forms with the IRS?

A: Yes. You must file form 2441, Child and Dependent Care Expenses, when you file your 1040 with the IRS.

Q. How do I use the Personal Policy Account?

A: This account is used to pay for your individually owned insurance plans. To participate in this plan, fill in the amount you will be electing on the enrollment form, and submit a copy of the title page of your plan, indicating the name of the insured, the policy number, and the premium amount. When you receive your insurance bill, send or fax a copy of the bill with your voucher, and we will send you a reimbursement check for the amount that is in your account at that time. If there is a balance left on the expense, it will be carried forward to future months, and reimbursed as the funds become available.

Q. What happens if I leave the company?

A: If you leave the company, your deductions automatically stop. You will be allowed to submit claims for expenses incurred while you were participating in the plan. You may submit claims up to the end of the grace period specified in your plan, usually three months after the end of the plan year. If you want to continue participating in the Medical Reimbursement Account, you can convert your plan to COBRA, and continue making your contributions voluntarily after tax, until the end of the plan year. By converting to COBRA, you can submit claims for expenses incurred after your termination

Short Term Disability


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An injured employee is worried about many things, including surviving without a paycheck. If the accident happened off the job, Worker''s Compensation won''t cover it. If an employee has to rely on savings, research shows this will last on average just 4.8 weeks. An insured Short Term Disability plan can replace up to 100% of the income lost due to injury of sickness. Focusing on short term disability is the first step to gaining control of overall disability costs. A well-managed STD plan can help an employer identify, track and handle claims professionally and consistently. Active claim management through a fully-insured plan can help shorten the duration of disabilities through rehabilitation and return-to-work efforts, reducing your costs and preventing short term disabilities from turning into long term ones. FAQs

Will our Worker''s Comp cover short term claims?

62% of disabilities occur off the job. These are not covered by Worker''s Comp.

Doesn't State Disability pay for short term disabilities?

Yes, but SDI only pays 55% of income up to $334 per week. An STD plan can be designed with higher percentages and maximums to replace a larger amount of income. The STD plan will pay on top of SDI to these higher amounts.

Does an insured STD plan cover pregnancies?

Yes, pregnancies are covered as any other disability.

How often do short term disabilities occur?

The average occurrence of STD claims is 65 per 1,000 insured lives per year.

Vision Insurance


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Vision care insurance is insurance that provides coverage for services relating to the care and treatment of the eyes. It typically covers services delivered by an optometrist or opthamologist. Depending on the specific plan, some or all of the following services may be covered:

  • Yearly eye exams
  • Glasses (with an annual limit)
  • Contact lenses and fitting (with an annual limit)
  • Glaucoma screening

Some vision plans may provide more extensive coverage (such as certain eye surgeries), while others may limit coverage to "reasonable and customary" charges incurred during routine eye exams. Reasonable and customary charges generally don't include the cost of glasses and contact lenses. With some employer-sponsored vision plans, coverage may be even more narrowly limited to the medical treatment of certain eye conditions. This is rare, however.

How much does it cost?

Vision care insurance is generally available for a small, nominal annual premium (often as little as $50 a year). What�s more, your employer may pay the premium, or part of it, thereby further reducing your cost.

How does it work?

Vision care insurance may provide direct payment to the eye care provider for the services you receive. Or you may be required to cover the charges out-of-pocket at the time of service, and then file a claim for reimbursement. It depends on the specific plan.

Where do you get it?

Almost everyone who has vision care insurance gets their coverage through work. Employer-sponsored vision care plans may be self-funded or self-administered plans. Vision insurance may also be part of an employer�s group health insurance plan, or one of several options from which employees can choose under an employer�s cafeteria benefit plan. Commonly, an employer will purchase group vision insurance through an HMO, insurance company, or other organization that offers group vision care plans.

Individual vision care policies are scarce because they�re generally not cost effective from an insurer�s standpoint. If you don�t have access to vision care coverage through your employer, you will likely have a difficult time obtaining this kind of insurance through an individual, stand-alone policy. Some individual health insurance policies may include vision coverage, however, or allow you to add it for a slightly higher premium.

Who should have it?

Anyone who has access to employer-sponsored vision coverage should probably take advantage of it because the minimal cost is outweighed by the benefits. If you don't have coverage and you have no vision problems, you should probably just forego vision insurance and "pay as you go" for annual eye exams. However, if your vision expenses are relatively high (glasses, contacts, etc.) and you don�t have employer coverage, you may want to look into other ways of obtaining vision insurance.

Voluntary Plans


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Voluntary Benefit Payroll Deduction plans have become increasingly popular among employers and employees alike. Employers appreciate the offerings because it allows them to offer a complete line of benefits without having to actually pay for any of the actual costs. In many instances the employers actually benefits because of the FICA, Medicare, Workers Compensation and Unemployment payroll tax savings.