Mysterious QRP Explained by Tony Martinez
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.
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.