FAQ - Payments

Payments

If I have an existing 401k or IRA from an old employer, can I roll that into the new plan?

Yes. There are no taxes to pay or penalties if it is an in-kind roll over.

Payments

If you’re running everything through an eQRP and this is your only source of income, you have not yet reached old age, how does that work?

If you’re over 59.5, you probably got some flexibility because you can have money that you’re taking out. If you’re younger than that, you’re going to need some current revenue of some sort. You’re going to have some money that’s making money outside of it because you only borrow 50,000 and…Click for more

Payments

Can I use the eQRP for something that I want to benefit on, or does it have to be a purely on investment?

It does control benefit and you cannot have credit benefit. If you wanted to do something that is for you, then we’d suggest to borrow money out of your plan to use it for that investment. Within the eQRP there has to be an investment. The IRS does not want you…Click for more

Payments

What are the ongoing responsibilities and costs involved in a QRP?

Once you’re set up you’ll generally have little or no ongoing expenses. You are required to file a form 5500 with the IRS if you plan has over $250,000 in assets.  If you have less then $250,000 and less then 100 employees you’re exempt from filing this form.  You can…Click for more

Payments

How do I calculate the amount I can contribute to my QRP 401k and profit sharing plan?

You can contribute up to $17,000 per year to your 401(k) for 2012.  The profit sharing plan will allow you to contribute a maximum of $50,000 per year for 2012 which includes the elective deferral amount ($17,000).  The profit sharing portion, which is another way of describing the employer contribution…Click for more

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