FAQ - Setting up an eQRP

Setting up an eQRP

What types of businesses can set up Qualified Retirement Plans?

Sole Proprietorship, C Corporation, S Corporation, Partnership, Limited Liability Corporation (LLC), Limited Liability Partnership (LLP), and Not for Profit 501(c)(3).

Setting up an eQRP

If I am not a U.S. resident (Canadian) can I set up a retirement plan in the U.S. and still keep my plan in a foreign county like Canada?

YES. There are no laws that prevent you from having a retirement plan in both countries.

Setting up an eQRP

Does the QRP have it’s own Fed ID# and Separate bank account?

Yes, the Federal EIN is provided to you when the QRP is set up.

Setting up an eQRP

I know that congress is trying to encourage taxpayers to set up retirement plans and has passed laws to allow tax credits for startup expenses up to $500 per year for 3 years. Is this true? And how much can I write off?

Yes. The small business start up credit is 50% of eligible start up and administrative costs, for a maximum credit of $500 per year or $1500 over 3 years, plus you can write off the balance of the the cost of the plan as a business deduction. For example: Plan…Click for more

Setting up an eQRP

I would like to pay for the start up costs for the plan out of an existing IRA. Is this a good idea?

No, this is not a good idea because you cannot take a tax deduction if you pay for the start up costs with your IRA. If you pay using your business account, you will get a tax deduction for the cost of the plan and may even qualify for the…Click for more

Setting up an eQRP

Who can be a trustee on the plan?

You or any other person you appoint to be a trustee.

Setting up an eQRP

Do I need multiple bank accounts?

Yes, at a minimum you’ll need 2 accounts one for tax referred & one for ROTH.

Setting up an eQRP

How do I get a QRP? How long does it take?

Either click on the “Buy” button on the upper right hand corner of this page or give us a call at: 800-270-1649. The information required will take about 5 minutes to gather and then you’ll receive documents from us in about 2 business days, and once those docs are e-signed,…Click for more

Setting up an eQRP

What happens if I have several different businesses? Can I still use all of my income to calculate my contribution to the plan?

If you own the majority control of all your businesses, you can establish one plan and have the other businesses adopt the plan. However, if you do not have majority ownership in all the businesses, you will want to set up separate plans for each. Separate. QRP plans for each…Click for more

Setting up an eQRP

Is there a minimum amount of income my business needs before I set up my plan?

There are no minimum income limits for a QRP. You can only use your income from the business that the QRP account is associated with or a rollover from another 401k or IRA, but you don’t have to make a certain amount.

Total Control Financial