The soloQRP

What people love about the soloQRP is their ability to choose where to deposit their funds. As the trustee, you can open your own bank account at the institution of your choosing, so long as they keep the account in the name of the soloQRP. Non-cash assets can also be self-custodied and record keeping can be performed by you as the plan trustee. Should you prefer, NuView can be retained to serve as the record keeper of your plan’s cash and assets allowing you more time to focus on investing and less time dealing with the paperwork.

The soloQRP allows the simplicity of holding alternative and traditional investments. You can invest in all types of assets (excluding collectables) such as, real estate, cryptocurrency, notes, precious metals, stocks, bonds, and mutual funds.

Tax reporting is not required until your account balance reaches $250,000. After exceeding $250,000, you will be expected to report IRS Form 5500-EZ annually (due by July 31st). A 1099 may be required if a plan distribution was taken.

soloQRPs must be established in the calendar year you intend to begin contributing. Once the plan is established, the employee deferrals are due by December 31st. Employer deferrals are due by the employers’ tax filing deadline including extensions.

If your spouse works in the business and earns income from it, he or she can contribute to the soloQRP. Your spouse would become a participant of the plan. He or she would be eligible to make employee contributions of up to $20,500 and employer contributions up to 25% of their eligible earnings. These contributions would be in addition to your contributions.

If you have self-employed income that qualifies you for the soloQRP, you are eligible to make contributions in addition to your employer 401k plan. Your employee deferral for both the soloQRP and employer 401k combined cannot exceed the $20,500 annual contribution limit.

At a minimum, NuView provides the plan documents for you to adopt the soloQRP. Once adopted, the designated trustee and plan administrator (typically you by default) is responsible for the day-to-day operations, record keeping, and reporting of the plan. NuView will only be responsible for providing plan updates as they occur. Additionally, NuView can be retained as the plan record keeper in which case, we would hold the plan assets, track the movement of funds, and provide an annual statement to the trustee and plan administrator to perform any applicable IRS reporting.

You are not required to earn income through an LLC to be eligible. Freelancers, independent contractors, and sole proprietors are eligible to create a soloQRP. From an investment standpoint, you do not need an LLC to hold the assets of the soloQRP. One of the major benefits of the soloQRP is the built in “checkbook control” function that allows you, as the trustee, to directly control the movement of your funds.

One of the benefits of the soloQRP is that you can make Roth-like contributions with no income restrictions. These employee deferral contributions allow up to $20,500 annually.