Frequently Asked Questions

Using the eQRP

What investments are disallowed by the plan?

Anything considered a collectible, such as: ‰Art ‰Rugs ‰Stamps or Collectible Coins ‰Metals or Gems ‰Antiques Autos

Using the eQRP

Can I buy life insurance with this plan?

Yes, you can buy life insurance with a QRP. This can dramatically cut life insurance costs by allowing premiums to be paid with mostly tax deductible rather than after tax dollars. The Tax Code also allows you to deduct the plan contributions that are used to pay for life insurance…Click for more

Using the eQRP

What investments can my QRP purchase?

-Gold Bullion coins and bars must be .9999 fine ‰-Silver Bullion coins and bars must be .999 fine -‰U.S. Treasury Gold and Silver Coins –Small business start ups ‰-Tax Lien Certificates -‰Trust Deeds ‰-Mortgage Notes ‰-Single Family and Multi Unit Homes ‰-Securities ‰-CD’s ‰-Stocks ‰-Bonds -‰Mutual Funds ‰-LLC’s ‰-Apartment Buildings…Click for more

QRP Maintenance

Under law how long must plan administer or plan provider keep 401(k)-related records?

The requirement is that records must be retained for 6 years. Records used to compile information that is required to be reported under the reporting and disclosure rules must be preserved by plan administrators (and by actuaries, accountants and others who may be involved) for 6 years after the due…Click for more

QRP Maintenance

Is the QRP set up with myself being the administrator, or can someone else be the administrator? What are the duties of an administrator?

You can be the administrator or hire a 3rd party to be the administrator. Duties include: ‰Make contributions in accordance to the plan. Keep the plan up to date and in compliance with all retirement plan laws. ‰Invest plan assets in accordance to the plan. ‰Provide information and required disclosures…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.

Contributions

Do I have to contribute to my QRP every year?

NO, you can contributed whenever you want with your elective deferral (your own contribution). You have a maximum that you can contribute, but no minimum requirement.

QRP Maintenance

What’s are the ongoing responsibilities and costs involved in an eQRP Administration?

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 $250,000 in assets or more. If you have less then $250,000 and less then 100 employees you’re exempt from filing this form. You…Click for more

Using the eQRP

Can my significant other and I both participate in one plan?

Yes, you can both be listed as Trustees of the plan. As long as you both perform services for the company, you can make elective deferral and profit sharing contributions. In 2016, you can contribute up to $53,000 each ($106,000 if married). If you are age 50 or older, you…Click for more

Contributions

Can I use personal money to transfer into my plan? What money qualifies to put into the plan?

No, you cannot transfer personal money to contribute into the plan. Qualifying contributions consist of rollovers, elective deferrals, employer match contributions, employer profit sharing contributions, and qualified non-elective contributions. New deductible contributions to your plan need to be from your business account, not your personal account. They must come from…Click for more

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