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Mysterious QRP Explained by Saen Higgins
Qualified Retirements Plans (QRP) baffle most people. How can one possibly have a retirement plan that allows you to invest in real estate? Well, most don’t. You may already know that with a self directed IRA you can invest in real estate, though it is difficult to do so, and if the investments are made through an entity (such as an LLC) your profits could be subject to taxation.
Well, to avoid this mess Tony Martinez and I coined Qualified Retirement Plans to help us, and others, achieve the flexibility we all desire. Most importantly of course, we don’t want our retirement funds taxed! While at the same time enjoying high returns from tax lien and tax deed investments.
A QRP in the eyes of the IRS is simply a solo 401K. This allows those who have QRP’s to avoid being subject to certain retirement account regulations. As long as your QRP’s plan documents allow for real estate investing, you can invest in real estate. And of course, if you purchase a QRP through us, your plan documents will outline that clearly.
To break it down even more...By having an LLC, you are essentially a small business owner. 401K’s can only be associated with a business. So, by opening an LLC you can then issue yourself a solo 401K aka a QRP. With a QRP you are your own plan administrator, so you manage your retirement funds completely on your own. With hardly any limitations you can grow your funds at the speed you like.
When it comes to filing taxes at the end of the year, the QRP can be confusing due to general unfamiliarity. Request that your CPA brush up on solo 401K guidelines. If they aren’t interested in doing that for you, then you must branch out and look for someone who is already familiar with this type of retirement account or is willing to learn.
If you’re looking to supercharge your retirement account then consider a QRP. Know that investing in real estate has its risks, so take care with your due diligence.
Saen Higgins is the Co-Founder of US Tax Lien Association. He is one of the world’s foremost authorities on the subject of investing in Tax Lien Certificates and Tax Foreclosed Properties. He has been training and speaking internationally for over 25 years. Saen is passionate about sharing his philosophies on real estate investment and creating financial freedom. His extensive knowledge in the field of self-directed retirement accounts has changed the quality of life for thousands and the way they invest. Saen’s devotion to helping people creates true financial independence and is only matched by his business partner, Tony Martinez.