Edgar Filing: H&R BLOCK INC

e11vk

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

(Mark One)


[X]	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2003


[ ]	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number 1-6089

H&R Block Retirement Savings Plan
(Full title of the Plan)

H&R BLOCK, INC.

4400 Main Street
Kansas City, Missouri 64111
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office)

The H&R Block Retirement Savings Plan
Index


	Page
Reports of Independent Registered Public Accounting Firms		1 - 2
Financial Statements:
Statements of Net Assets Available for Benefits, December 31, 2003 and 2002		3
Statement of Changes in Net Assets Available for Benefits, For the Year Ended December 31, 2003		4
Notes to Financial Statements		5 - 9
Schedule: *
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2003		10 - 16
Signature		17
Exhibits
Consent of Independent Registered Public Accounting Firm (Exhibit 23.1) — Direct Link to Consents		18
Consent of Independent Registered Public Accounting Firm (Exhibit 23.2) — Direct Link to Consents		19

* Prepared in accordance with the filing requirements of ERISA. Other Schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable.

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
the H&R Block Retirement Savings Plan.:

We have audited the accompanying statement of net assets available for benefits of the H&R Block Retirement Savings Plan (the “Plan”) as of December 31, 2003, and the related statement of changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the H&R Block Retirement Savings Plan as of December 31, 2003, and the changes in net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule H, line 4i- schedule of assets (held at end of year) as of December 31, 2003 is presented for purposes of additional analysis and is not a required part of the basic financial statements. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ KPMG LLP

Kansas City, Missouri
June 25, 2004

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
the H&R Block Retirement Savings Plan:

In our opinion, the accompanying statement of net assets available for benefits presents fairly, in all material respects, the net assets available for benefits of the H&R Block Retirement Savings Plan (the “Plan”) at December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. This financial statement is the responsibility of the Plan’s management; our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit of this statement in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri
June 27, 2003

The H&R Block Retirement Savings Plan

Statements of Net Assets Available for Benefits
December 31, 2003 and 2002


	December 31,
	2003		2002
Assets
Cash, non-interest bearing	$	—	$	36,169,840
Investments, at fair value:
H&R Block, Inc. common stock fund		13,627,982		10,067,064
Mutual funds		293,114,266		190,818,149
Common collective trust		37,459,911		23,456,013
Self-directed brokerage accounts		6,721,478		4,778,244
Participant loans		7,242,971		4,264,271

Total investments		358,166,608		233,383,741
Receivables:
Employer contributions		3,854,039		1,205,778
Participant contributions		1,817,045		879,193
Dividends		984,670		171,638
Option One Mortgage Company Retirement Plus Plan transfer		—		706,478

Total receivables		6,655,754		2,963,087
Total assets		364,822,362		272,516,668

Liabilities
Due to broker for securities purchased		—		22,669,976
Accrued expenses		65,179		70,066

Net assets available for benefits	$	364,757,183	$	249,776,626

See accompanying notes to financial statements.

The H&R Block Retirement Savings Plan

Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2003


	For the Year Ended
	December 31, 2003
Additions:
Investment income:
Dividends and interest	$	7,605,942
Net appreciation in fair value of investments		57,510,940
Other		38,993

		65,155,875
Contributions:
Employer		27,670,537
Participant		46,348,124

		74,018,661
Total additions		139,174,536
Deductions:
Distributions to participants		23,768,450
Administrative expenses		425,529

Total deductions		24,193,979

Net increase		114,980,557
Net assets available for benefits
Beginning of year		249,776,626

End of year	$	364,757,183

See accompanying notes to financial statements.

The H&R Block Retirement Savings Plan

Notes to Financial Statements
December 31, 2003

1.		Description of the Plan

		General

		The H&R Block Retirement Savings Plan (the “Plan”) is a defined contribution plan sponsored by HRB Management, Inc. (the “Company”) for its employees and the employees of certain of its affiliates. The Plan became effective on January 1, 1985 and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

		The Plan provides for selection of an administrative committee, a plan administrator and a trustee by the Board of Directors of the Company. The administrative committee is responsible for the general administration of the plan and the interpretation of its provisions. The plan administrator is responsible for the reporting and disclosure requirements under ERISA. BNY Western Trust Company is the Plan’s trustee.

		In December 2001, the Plan was amended and restated to, among other things, allow participants to make pre-tax contributions up to fifty percent of their compensation (subject to Internal Revenue Code limitations), with a discretionary employer matching contribution of up to one hundred percent of a participant’s contributions not to exceed five percent of the participant’s compensation. In addition, the amendment made vesting in any prospective employer matching contributions immediate. These amendments were effective as of January 1, 2002 for participants employed by a participating employer in the “Investment Services Line of Business,” as such term is defined by the Plan, and July 1, 2002 for all other participants. Additionally, individual brokerage accounts were added as an investment option during February 2002 for participants employed by a participating employer in the Investment Services Line of Business and as of April 1, 2002 for all other participants.

		During December 2002, the Company approved a plan to merge the Option One Mortgage Corporation Retirement Plus Plan (the “Option One Plan”) into the Plan. The Option One Plan was sponsored by Option One Mortgage Corporation, an affiliate of the Company. Substantially all of the net assets of the Option One Plan were transferred to the Plan by December 31, 2002. Remaining assets totaling $706,478 were transferred in 2003 and are presented as a receivable in the statement of net assets available for benefits at December 31, 2002.

		The following description provides only general information. Participants should refer to the Plan document for a more complete description of the Plan.

		Investment Option Change

		Effective July 1, 2003, the Strong Funds, Strong Blue Chip 100 Fund was replaced with the American Funds, Growth Fund of America as an investment option of the Plan. Participant balances remaining in the Strong Blue Chip 100 Fund existing on July 1, 2003 were transferred into the Growth Fund of America.

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

		Eligibility

		The timing of an employee’s eligibility for participation in the Plan depends on whether the employee is classified as a nonseasonal employee or seasonal employee. With respect to participant contributions and employer matching contributions: (a) nonseasonal employees are automatically enrolled in the Plan beginning the first day of the month following or coinciding with the date they complete 90 “Days of Service,” as such term is defined in the Plan, and (b) seasonal employees are automatically enrolled in the Plan beginning with the first participation date (January 1 or July 1) following or coinciding with the date they complete a “Year of Service,” as such term is defined in the Plan. With respect to employer profit sharing contributions, both nonseasonal and seasonal employees are eligible to participate beginning the first day of the Plan year that immediately precedes or is coincident with the date the employee completes a “Year of Service.”

		Contributions

		Participants may make pre-tax contributions from two to fifty percent of their compensation, subject to Internal Revenue Code limitations. The Company may make discretionary matching contributions of up to one hundred percent of a participant’s contributions, not to exceed five percent of the participant’s compensation. The Company may also elect to make discretionary profit sharing contributions, which would be allocated among participant accounts based on the participant’s eligible compensation. For the year ended December 31, 2003, the Company contributed $27,670,537 for the matching contribution. No discretionary profit sharing contributions were made during the year ended December 31, 2003.

		Vesting

		Participant contributions, and earnings thereon, are fully vested and nonforfeitable at all times. Beginning January 1, 2002 for participants in the Investment Services line of business, and beginning July 1, 2002 for all other participants, employer matching contributions made after such applicable effective date, and earnings thereon, are fully vested and nonforfeitable at all times.

		Forfeitures

		Forfeitures for the plan year are used to reduce the administrative expenses of the Plan or to reduce employer matching contributions. For the year ended December 31, 2003 the amount forfeited was $503,933. Forfeitures of $592,547 were used to pay Plan administrative expenses and reduce employer matching contributions during the year ended December 31, 2003. The forfeiture balance of $289,747 as of December 31, 2003, will be used to reduce future matching contributions.

		Earnings

		Earnings are allocated each day to participant accounts based upon the participant’s balance in each investment option as a percentage of the Plan’s balance in the respective investment option.

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

		Loans

		Participant loans must be at least $1,000 and are limited to the lesser of $50,000 less the highest outstanding loan balance in the previous 12 months or fifty percent of the participant’s vested account balance. Interest is prime plus one percent. Loans are payable over one to five years except for loans for the purchase of a residence, which may be longer.

		Distributions

		Generally, distributions may not be made to a participant, or in the case of death, a participant’s beneficiary, until administratively feasible following the earliest of the participant’s death, disability, or severance from employment. Distributions are in the form of a lump sum cash payment.

		Termination

		Although the Company has not expressed any intent to do so, it has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in the Plan and under ERISA.

2.		Significant Accounting Policies

		Basis of Accounting

		The financial statements of the Plan have been prepared on the accrual basis of accounting.

		Investment Valuation and Income Recognition

		H&R Block, Inc. Common Stock is stated at fair value as determined by the market closing price on the last business day of the plan year. Mutual funds, including those in self-directed brokerage accounts, are stated at fair value as determined by quoted market prices. Participant loans are valued at cost, which approximates fair value. The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date.

		Expenses

		All administrative expenses incurred by the Plan are paid by the Plan, except to the extent paid by the Company. To the extent forfeitures are not used to pay administrative expenses of the Plan, such expenses are covered using participant account balances.

		Payment of Benefits

		Benefits are recorded when they have been approved for payment.

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

		Use of Estimates

		The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates.

3.		Investments

		The Plan’s investments (including investments bought, sold, and held during the year) appreciated in fair value as follows:


	For the Year Ended
	December 31,
	2003
H&R Block, Inc. common stock fund	$	4,034,599
Mutual funds, Common Collective Trust, and Self-directed brokerage accounts		53,476,341

	$	57,510,940

		The H&R Block, Inc. Common stock fund uses “unit” accounting. As a unitized stock fund, the Common stock Fund holds primarily H&R Block, Inc. common stock and a small percentage of cash and short-term investments, while participants hold units of the fund.

		Individual investments that represent five percent or more of the fair value of the Plan’s net assets are as follows:


	December 31,
	2003		2002
Legg Mason Value Trust Fund		*	$	28,250,123
SEI Stable Asset Fund		37,459,911		23,456,013
Dodge & Cox Stock Fund		48,943,789		*
Vanguard Institutional Index 500		45,260,287		31,165,946
Vanguard Wellington Fund		105,774,619		72,821,444

Less than 5% of Plan’s assets in the applicable year.

4.		Benefits Payable

		The Plan records a liability relating to the obligations for benefit payments to active employees for hardship or in-service withdrawals and terminated employees. As of December 31, 2003 and 2002, net assets available for benefits included assets and corresponding liabilities of $41,492 and $27,076, respectively, due to participants who have terminated employment with the Company.

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

5.		Income Tax Status of the Plan

		The Plan received its latest determination letter dated November 11, 2003 in which the Internal Revenue Service stated the Plan is in compliance with the applicable requirements of the internal revenue code. The plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

6.		Related Party Transactions

		As of December 31, 2003 and 2002, the Plan’s investment portfolio includes an investment in the Common Stock of H&R Block, Inc., a party-in-interest to the Plan.

		The Plan’s recordkeeper, RSM McGladrey (“RSM”), is an affiliate of the Company and was paid $320,175 in administrative fees and reimbursements during the year ended December 31, 2003. As of December 31, 2003, administrative fees payable to RSM totaled $14,987 and are included in accrued expenses in the Statement of Net Assets Available for Benefits.

		The Plan’s custodian, H&R Block Financial Advisors, Inc., is an affiliate of the Company.

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
*	H&R Block, Inc. Common Stock Fund	H&R Block, Inc. Common Stock		233,696	$	12,939,748
		Cash and other assets, net		688,234		688,234

Mutual funds:						13,627,982
	AIM Family of Funds	AIM Constellation Fund Class A		144,674		3,111,936
	AIM Family of Funds	AIM Premier Equity Fund Class A		129,740		1,216,961
	AIM Family of Funds	AIM Weingarten Fund Class A		30,541		368,941
	Columbia Funds	Columbia Small Cap Fund		291,670		6,860,079
	Calamos Funds	Calamos Growth Fund		192,099		8,602,176
	Dodge & Cox Funds	Dodge & Cox Stock Fund		430,162		48,943,789
	American Funds Group	EuroPacific Growth Fund		489,726		14,794,636
	Franklin Templeton Investments	Franklin DynaTech Fund A		28,231		639,143
	Franklin Templeton Investments	Franklin Small-Mid Cap Fund		56,642		1,711,709
	American Funds Group	Growth Fund of America Class A		61,218		1,502,288
	American Funds Group	Growth Fund of America Class R5		707,627		17,379,321
	INVESCO Family of Funds	INVESCO Technology Fund		43,082		1,069,737
	American Funds Group	Investment Company of America Fund		32,965		950,721
	Lord Abbett Family of Funds	Lord Abbett Mid-Cap Value A Fund		666,545		12,551,042
	American Funds Group	New Perspective Fund		34,366		841,617
	PIMCO Funds	PIMCO Total Return Fund		1,481,284		15,864,553
	ICM Series Trust	ICM Small Company Fund		94,707		3,060,933
	Vanguard Group	Vanguard Institutional Index 500		444,687		45,260,287
	Vanguard Group	Vanguard Wellington Fund		3,671,455		105,774,619
	American Funds Group	Washington Mutual Fund		80,613		2,320,031
	The Reserve Funds	Reserve Primary Institutional Fund		289,747		289,747

						293,114,266

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
Common Collective Trust:
	SEI Investments	SEI Stable Asset Fund		37,459,911		37,459,911
Self-directed brokerage accounts:
	AIM Family of Funds	AIM Basic Value Fund Class A Fund		834		24,391
	AIM Family of Funds	AIM Mid Cap Core Equity Fund		12,887		346,915
	AIM Family of Funds	AIM Global Health Care Class A Fund		2,992		78,294
	AIM Family of Funds	AIM Developing Markets Fund		5,705		63,612
	AIM Family of Funds	AIM Charter Class A Fund		10,376		123,370
	AIM Family of Funds	AIM Income Class A Fund		1,232		8,228
	AIM Family of Funds	AIM International Growth Fund Class A		8,912		145,348
	AIM Family of Funds	AIM Global Growth Fund Class A		64		1,014
	AIM Family of Funds	AIM European Growth Fund Class A		1,736		38,808
	AIM Family of Funds	AIM Asia Pacific Growth Fund Class A		5,322		68,490
	AIM Family of Funds	AIM Opportunities I Fund Class A		4,130		58,484
	AllianceBernstein Funds	AllianceBernstein American Govt Fund		1,633		12,263
	AllianceBernstein Funds	AllianceBernstein Small Cap Growth Fund		104		2,132
	AllianceBernstein Funds	Alliance Bernstein Disciplined Value Fund		1,571		22,297
	AllianceBernstein Funds	Alliance Bernstein Small Cap Value Fund		1,110		16,565
	American Funds Group	AMCAP Fund Inc. Class A Fund		2,099		35,364
	American Funds Group	American Balanced Fund Class A		7,482		129,358
	American Funds Group	American High Income Fund Class A		258		3,179
	American Funds Group	American Mutual Fund Inc. Class A		1,220		29,740
	Artisan Funds	Artisan International Fund		585		11,066
	Calamos Funds	Calamos Convertible Growth and Income Fund		2,196		60,992
	Calamos Funds	Calamos Growth Fund		4,750		212,725

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
	American Funds Group	Capital Income Builder Fund		114		5,470
	American Funds Group	Capital World Growth		822		24,559
	Columbia Funds	Columbia Acorn Fund Class A		570		12,653
	Columbia Funds	Columbia Small Cap Fund Class A		138		2,346
	Credit Suisse	Credit Suisse Small Cap Value Fund		360		7,399
	Davis Funds	Davis New York Venture Fund		96		2,633
	Delaware Investments	Delaware Real Estate Trust Fund		73		1,314
	Delaware Investments	Delaware Technology & Innovation Fund		4,237		7,373
	Dreyfus	Dreyfus Index Fund		428		13,889
	Eaton Vance Group	Eaton Vance Worldwide Health Fund		1,088		10,854
	American Funds Group	EuroPacific Growth Fund		163		4,935
	Excelsior Funds	Excelsior Funds Value Fund		129		4,632
	Federated Investors	Federated Capital Appreciation Fund		711		16,969
	First Eagle	U.S. Value Fund Class A		822		10,635
	Franklin Templeton Investments	Franklin Income Fund		18,036		43,468
	Franklin Templeton Investments	Franklin Custodial Utilities Fund		1,163		10,944
	Franklin Templeton Investments	Franklin Custodial Growth Fund		711		21,631
	Franklin Templeton Investments	Franklin Custodial US Government Fund		1,139		7,688
	Franklin Templeton Investments	Franklin Equity Capital Growth		4,414		45,772
	Franklin Templeton Investments	Franklin Gold Fund		6,776		131,665
	Franklin Templeton Investments	Franklin High Income Fund		34,854		72,845
	Franklin Templeton Investments	Franklin Global Long-Short Fund Class A		374		4,161
	Franklin Templeton Investments	Franklin Convertible Securities Fund Class		771		11,322
	Franklin Templeton Investments	Franklin Equity Income Fund Class A		151		2,912
	Franklin Templeton Investments	Franklin Rising Dividends Fund Class A		3,352		99,426
	Franklin Templeton Investments	Franklin Real Estate Securities Fund		5,447		117,107
	Franklin Templeton Investments	Franklin Small Mid Cap Fund		656		19,811

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
	Franklin Templeton Investments	Franklin Global Health Care Fund Class A		1,635		31,247
	Franklin Templeton Investments	Franklin Global Communication Fund		829		6,451
	Franklin Templeton Investments	Biotech Discovery Fund		113		5,438
	Franklin Templeton Investments	Franklin Templeton Moderate Target Fund		714		8,381
	Franklin Templeton Investments	Franklin Balance Sheet Investment Fund		24		1,122
	Franklin Templeton Investments	Franklin Small Cap Fund Class A		67		2,039
	American Funds Group	Fundamental Investors Fund		1,690		48,744
	GE Funds	GE Small Cap Value Fund Class A		1,804		26,122
	Gabelli Funds	Gabelli Gold Fund		12,076		219,535
	Gabelli Funds	Gabelli Asset Fund		456		16,527
	American Funds Group	Growth Fund of America		3,458		84,869
	John Hancock Funds	John Hancock Financial Industries Fund		8,822		154,023
	John Hancock Funds	John Hancock High Yield Fund Class A		1,414		7,497
	John Hancock Funds	John Hancock High Income Fund Class A		605		6,159
	John Hancock Funds	John Hancock Health Sciences Fund		62		2,637
	Oakmark Funds	Oakmark Investments Fund		1,020		38,282
	Oakmark Funds	Oakmark International Investments Fund		533		9,596
	Oakmark Funds	Oakmark Equity Income Fund		941		20,713
	ING Funds	ING Mid Cap Value Fund Class A		753		8,361
	ING Funds	ING Russia Fund		1,617		35,058
	American Funds Group	Income Fund of America		1,380		23,712
	American Funds Group	Investment Company of America Fund		1,675		48,319
	Janus	Janus Mid Cap Value Fund		551		11,244
	John Hancock Funds	John Hancock Technology Fund		2,633		10,215
	Kelmoore Funds	Kelmoore Strategy Eagle Fund Class A		4,287		7,717
	Lord Abbett Family of Funds	Lord Abbett Mid-Cap Value A Fund		1,131		21,297

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
	Lord Abbett Family of Funds	Lord Abbett Affiliated Fund		182		2,471
	MFS Family of Funds	MFS Mid Cap Growth Fund		894		6,986
	Matthews Funds	Matthews Pacific Tiger Fund		873		11,475
	Matthews Funds	Matthews Asian Growth & Income Fund		462		6,391
	Matthews Funds	Matthews Japan Fund		998		13,187
	Matthews Funds	Matthews Asian Technology Fund		650		3,138
	The Munder Funds	Munder Healthcare Fund Class A		344		7,287
	The Munder Funds	Munder Future Technology Fund Class A		6,564		25,402
	The Munder Funds	Munder Micro Cap Equity Fund Class A		41		1,362
	The Munder Funds	Munder Small Cap Value Fund Class A		159		3,437
	The Munder Funds	Munder NetNet Fund Class A		1,004		16,822
	The Munder Funds	Munder Power Plus Fund Class A		1,739		15,200
	Navellier Performance Funds	Navellier Aggressive Growth Fund		467		5,500
	Navellier Performance Funds	Navellier Mid Cap Growth Fund Class A		572		13,034
	American Funds Group	New Perspective Fund		683		16,718
	One Group	One Group Ultra Short Term Bond Fund		5,049		50,139
	Oppenheimer Funds	Oppenheimer Enterprise Fund Class A		183		2,140
	Oppenheimer Funds	Oppenheimer Main Street Fund Class A		2,051		67,269
	Oppenheimer Funds	Oppenheimer Quest Balanced Value Fund		336		5,492
	Oppenheimer Funds	Developing Markets Fund Class A		175		3,612
	PBHG Funds	PBHG Clipper Focus Fund		1,016		16,762
	PIMCO Funds	PIMCO PEA Renaissance Fund Class A		3,093		71,252
	PIMCO Funds	PIMCO Total Return Fund Class A		143		1,535
	PIMCO Funds	PIMCO Real Return Fund Class A		6,546		73,642
	PIMCO Funds	PIMCO Short Term Fund Class A		455		4,567
	Parnassus Funds	Parnassus Equity Income Fund		337		8,089
	PIMCO Funds	PIMCO Commodity Real Return Fund		1,767		24,070

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
	Putnam Funds	Putnam International Opportunity Fund		1,214		12,536
	N/I Numeric Investors Funds	Numeric Investors Small Cap Value Fund		558		10,714
	N/I Numeric Investors Funds	N/I Numeric Investors Growth Fund		795		10,548
	RS Funds	RS Diversified Growth Fund		92		2,046
	Royce Funds	Royce Opportunity Fund		919		11,151
	Royce Funds	Royce Total Return Fund		1,079		11,535
	Rydex Funds	Rydex Venture 100 Fund Class H		5,981		159,039
	Rydex Funds	Rydex Velocity 100 Fund Class H		28,431		563,212
	Rydex Funds	Rydex Tempest 500 Fund		3,658		192,635
	Rydex Funds	Rydex Titan 500 Fund		1,178		38,204
	Rydex Funds	Rydex Large Cap Japan Fund		386		11,524
	Rydex Funds	Rydex Telecommunications Fund		3,688		52,291
	Rydex Funds	Rydex Juno Fund		3,170		66,601
	Scudder Funds	Scudder Japanese Equity Fund		1,503		14,955
	Scudder Funds	Scudder Technology Fund		230		2,551
	Selected Funds	Selected American Shares Fund		144		4,768
	Seligman Group	Seligman Communications Fund		857		19,705
	Tamarack Funds	Tamarack Micro Cap Value Fund Class S		804		13,895
	American Funds Group	Small Cap World Fund		136		3,646
	Sun America Funds	Sun America Focused 2000 Growth Fund		956		14,370
	Sun America Funds	Sun America Focused Growth & Income Fund		85		1,333
	Sun America Funds	Sun America Focused 2000 Value Fund		630		12,232
	Sun America Funds	Sun America Focused Large Cap Growth Fund		913		15,884
	Sun America Funds	Sun America Focused Multi Cap Value Fund		659		12,015
	Turner Investment Partners	Turner Small Cap Value Fund		306		6,873
	Franklin Templeton Investments	Templeton Developing Markets Fund		10,413		156,098
	Franklin Templeton Investments	Templeton World Fund		11,392		192,186

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003


					(e)
	(b)	(c)			Current
(a)	Identity of Issuer or Borrower	Description of Investment	Shares Held		Value
	Franklin Templeton Investments	Templeton Foreign Fund		24,052		255,913
	Franklin Templeton Investments	Templeton Growth Fund		1,495		30,905
	Franklin Templeton Investments	Templeton Global Opportunity Fund		3,866		53,388
	Franklin Templeton Investments	Templeton Global Bond Fund		4,803		49,034
	Scudder Investments	Scudder Tax Advantage Dividend Fund		480		5,368
	Van Eck Funds	Van Eck International Investors Gold Fund		492		5,723
	Vanguard Group	Vanguard Health Care Fund		229		27,584
	Vanguard Group	Vanguard Explorer Fund		160		10,480
	Vanguard Group	Vanguard Institutional Index 500		19		1,919
	Vanguard Group	Vanguard Index Small Cap Fund		90		2,033
	The World Fund	Vontobel Eastern European Equity Fund		765		9,818
	Delaware Investments	Delaware Select Growth Fund Class A		302		6,319
	American Funds Group	Washington Mutual Investment Fund		2,438		70,171
	The Reserve Funds	Reserve Funds Primary Fund		1,040,944		1,040,944

						6,721,478
*	Plan participants	Participant Loans, Interest range: 3.7% to 10.5%				7,242,971

Total investments					$	358,166,608

Column (d) omitted as cost information is not required for participant directed assets.

* Indicates party-in-interest to the Plan.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.


	H&R Block Retirement Savings Plan
Date June 28, 2004	By:	/s/ Melanie K. Coleman
		Melanie K. Coleman
		Corporate Controller H&R Block, Inc.

Exhibit Index


Exhibit No.		Description
	23.1	Consent of Independent Registered Public Accounting Firm.

	23.2	Consent of Independent Registered Public Accounting Firm.