Is a Qualified Retirement Plan “QRP” a Scam? | Mark J Kohler | 2019


Has someone told you that the QRP is this new cool thing that no one else knows about but their company a qualified retirement plan and they’re the next best thing to slice bread and they’re the ones on the planet that Understand it better than anyone else and you should buy it from them well I’m going to dispel all the myths tell you what a QRP really is and help you find the best Product that’s going to fit you when it comes to this qualified retirement planning strategy Now if I sounded a little incredulous or Passive-aggressive or rude? I Apologize. There’s some folks out there that are talking about a qrp qualified retirement plan like they just discovered this planet in the universe that no one else has seen and really it’s been there the whole time and it’s called the moon so yeah, they’re cool and they just came up with this qrp terminology to sell their sexy plan maybe and sometimes at A lot higher price than you really need to pay. So let’s talk about what a qrp is here You are is a business owner. And this is your business and it might be a sole proprietorship It might be an LLC It might be an S corp, but you’ve got a business and this business is making money and you’re thinking qrp Ooh, ooh I want to get more write-offs in my business I need to do one of these QR P’s because I’ve never heard of these before they must be really cool Oh my gosh They are the same as setting up and this little qrp is a 401k It is a solo 401k Typically, if you’re the only owner of the business you and your spouse or maybe a family member, that’s how they are They’re a qualified retirement plan that 9 times out of 10 is going to be in the structure of a solo 401k So don’t think that they’ve discovered anything new Now can a qrp be an IRA or a SAP or a simple? Sure It could because a qrp is this overreaching umbrella That means qualified retirement plan that you’re gonna put money into now you can get money there without having a business to and someone may have said that they’re gonna talk about the r-word the Rollover and you’re gonna have this old 401k from a job or an old IRA and you’re going to roll this old money into your 401k qrp and you’re gonna Supercharge it and you’re gonna use this to go out and invest which I’m going to come to here in a moment So this is basically what a qrp is they’re simple and easy to understand there are a retirement That’s gonna fit your needs and when they go. Oh, well a qrp doesn’t pay this you VAT tax on debt So if I’m gonna buy rental properties, I don’t want to pay that sure 401 k’s don’t So we can they put this little label on it to make them sound really sexy and can you put a lot of money in? here with a contribution and a Profit sharing plan and a match sure That’s what we do for clients in a solo 401 K and we’ve been doing this for years, but I have clients Call me all the time going. Hey mark, someone’s been talking to me about a qrp. Do you know what they are? Yeah, it’s a 401 K and we’re good to go. So this is the first point I want to talk about the how here in a minute but of what you can do with this But it’s about having a business and getting bigger contributions than a typical IRA Or it’s rolling over money into this 401 K qrp with from old IRA money and then we’re gonna go out and invest it and I want to say one more thing to the Roth the Roth IRA plays a kind of a unique role in this because I have clients that have a Roth IRA out here and You cannot roll a Roth into a 401 K you you can Have a 401 K that has a Roth piece to it And you can say this is all Roth and I can roll a regular IRA In their IRA and then convert it to Roth But you can’t take a roth IRA now and roll it into a current 401 K solo 401 K Now we have solo 401 k’s that can be half roth and half traditional But you got to get the money first then convert it to rot so anyway, this is the first step of understanding what they are and Really how awesome they are and what you can do with it is what I want to talk about next so just briefly I want to tell you what your opportunities are in this area of managing your qrp the 401 K for lack of a better word is here’s your business and you’re gonna be making money and you’re gonna be wanting deductions and you’re gonna throw it over here into your 401 K or Whatever. It’s gonna be this umbrella of qrp definitions that mean a lot of different options could even be a defined benefit plan it could be a pension plan and matching and Profit sharing and all that good stuff again. All those buzzwords these companies that are typically not lawyers or accountants or financial advisors They just thought they’d be really good at this and so they’re just selling them like hotcakes out there once the money’s over here, you’re gonna be the trustee you’re gonna control the bank account and then we’re going to Self-direct that’s right. We’re right back to the same terminology that I’ve been talking about for 20 years And that is you’re going to self-direct this retirement plan and what that usually means is as you control this checkbook for the 401k or the IRA or the defined benefit plan, whatever it is We’re gonna go over here and set up an LLC So we can move money around quickly have protection for ourselves as the manager of this LLC And then we’re going to go out and invest it and do real estate. We’re gonna do small business startups We’re going to do restaurants if we want buy and sell gold silver we could do cryptocurrency We can do something very conservative or something very aggressive and this self-directing concept really again freaks out anyone in Wall Street And I do videos about this all the time where I talked about getting a huge rate of return in your Roth IRA Because you can when you self direct it So in summary a qualified retirement plan is just a very generic term to mean any of these a Roth 401 K regular 401 K solo 401k SEP simple IRA or Roth you Want to design it with your tax advisor and attorney to help put it in your overall structure. Be careful getting advice from someone That’s not licensed as a professional advisor giving you tax or legal advice because if anything goes wrong they’re not going to be there with my practice insurance or fiduciary duties as a licensed professional and The pricing does not have to be off the chart. Some of our prices are cheaper than other non-licensed folks. We have a Do-it-yourself 401k in a sense that you don’t need any consultations You just need to get it done for under 500 bucks Then we have the full-service 401k where you spend an hour with a new tax attorney designing your entire structure and looking at your tax return for less than a thousand bucks and you walk away with a solo 401k with a Tax ID number with the ability to go open a checkbook now I just say that not to be salesy but to let you know the options are here If you want to get a hold of us look down below into the details of our law firm With links to our 401 K special or self-directing or even directed IRA where you can rollover your IRAs start self-directed So hopefully that’s been helpful Don’t get bamboozled or sold on a qrp strategy is a really cool something that no one’s ever known about it’s simply this Have fun investing keep living your American dream Thanks so much for watching that video and I want to be your source for tax and legal strategies it’s hard enough to live the American dream without being out on the web on Google trying to find answers to complex questions and just Click in a mouse hoping you got it, right My team and I want to be a huge resource treatment the law firm accounting firm by Education resources on my site. Please continue to follow these strategies I know the safety thousands now click here if you want to be a part of my newsletter It’s awesome weekly updates and deadlines and strategies and tips also subscribe to my youtube channel You’ll love it and make sure to click the bell icon so you get a little ping whenever there’s a new video and Finally check out my site Marjory Kohler comm with all sorts of videos. Probably 70 plus videos 30 plus hours of content That’ll save you thousands

8 thoughts on “Is a Qualified Retirement Plan “QRP” a Scam? | Mark J Kohler | 2019”

  1. Hi Mark! Thanks again for all the eduction you provide to us. My accountant did an extension on my 2018 and advised me to get a 401k. I have a S-Corp. Can I open a 401k and fund it for both 2018 and 2019? Or is it too late to fund it for 2018?

  2. They created the problem of taxes, then offer the solution so you can invest 30% of your money for them……. sheep will continue down that road, intellects will read a book called “Becoming Your Own Banker” by R Nelson Nash on amazon for 20$

  3. No Roth rollover into 401k? Is this a unique restriction on Solo?
    I know it’s not allowed to convert a Roth 401k/IRA into a Traditional 401k/IRA (that’d be crazy anyway). And there are a couple extra nuances to what a solo Roth 401k can invest in.
    What precludes rolling a Roth IRA into a Roth 401k? Im pretty sure I can do that with my corporate 401k at Fidelity. What am I missing?

  4. Hey Mark, thank you for that info. I have a self directed IRA. So can I create a QRP and roll money over from the self directed IRA? What is the time frame it takes to set the QRP up , and the LLC to do business ? I have a LLC for the self directed IRA. Can I use that one for the QRP?

  5. Great video! Been wondering about a "QRP" for a while now. Figured it was mostly just marketing, but glad to get confirmation.

  6. Mark, someone has said that the Roth can be rolled to a qrp if a new business and “c” Corp is created. Does that sound legit to you?

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