A Retirement Plan that Allows You Ultimate Flexibility and a One-time Fee
First, a disclaimer: I am only a (potentially) extremely satisfied customer of this product. I am not affiliated with this company in any other way.
The product is called eQRP: Enhanced Qualified Retirement Plan. I had never heard of it before I encountered a discussion between Mark Podolsky and one of his colleagues in some of their training materials.
The attraction it holds for me comes from my participation in the Land Geek training course and needing as much capital as I can get to apply to that business. And I also am working as a programmer for an organization that does a 50% match to contributions I make to its 401(K) program.
Last but not least, I spoke with the 401(K) administrator and found that I can roll over money from the 401(K) to this new eQRP plan as often as every month!
My understanding of the plan is as follows:
(1) you choose either Roth or Standard (i.e. pay taxes on the way in or the way out)
(2) You give them a one-time fee of $1500
(3) You get a checkbook and can use the money any way you want!
Specifically, I am planning to choose the Roth option. My contribution every month will be 1462.50 minus a 20% tax hit immediately, leaving a net investment of $1170 per month in the business, or $14040 per year. (I will also have to pay another 4% next year on the initial amounts, since I am in the 24% bracket. But I should have made much more applying this money to the business than the extra taxes will cost.)
Also, I will then have a 2-sided business: taxed and untaxed. So it will make sense for me to pay all possible expenses through the taxed side and as few as possible through the untaxed side. Careful accounting will be necessary for all this, of course …
(Note that I am not a CPA … consult your tax advisor to check on all this yourself!)
For you traders: the restrictions you have to adhere to in most brokerages with IRAs and especially with 401(k) accounts are … crippling, some traders say. With an eQRP, though, you can roll money out of either of these vehicles and use the money in any kind of trading account that you want to set up.
Why does this exist? I’m not sure, but I’m very glad to be able to take advantage of it and not just be stuck in 401(k) purgatory for a long term (even with a 50% match.)
I hope this is helpful … best of luck with your business with this extra boost!
