Frequently Asked Questions

The eQRP® (Enhanced Qualified Retirement Plan) is a self-directed 401(k) plan designed for self-employed individuals and small business owners. It gives you total checkbook control over your retirement funds so you can invest in alternative assets like real estate, precious metals, cryptocurrency, private lending, and more — without needing custodian approval for each transaction.

A traditional 401(k) limits you to the menu of mutual funds and stocks your employer chooses. The eQRP gives you the power to invest in virtually any asset the IRS allows — real estate, crypto, gold, private equity, tax liens, and more — all with direct checkbook control from a bank account you manage.

Yes. The eQRP plan documents are drafted to comply with IRS regulations under Internal Revenue Code sections 401(a) and 401(k). Self-directed solo 401(k) plans like the eQRP are fully recognized by the IRS.

The eQRP is built for anyone with self-employment income who wants to take control of their retirement investing. This includes freelancers, consultants, real estate investors, small business owners, side-hustlers, and solopreneurs. If you have a business — even a part-time one — you likely qualify.

Most eQRP plans are fully established in as little as 24 hours. This includes creating your plan documents, registering with the IRS (EIN), setting up your dedicated bank account for checkbook control, and initiating any rollovers or transfers.

No. Unlike a self-directed IRA that requires a custodian for every transaction, the eQRP is structured as a trust. You serve as the trustee, giving you direct checkbook control. There is no custodian in the middle slowing you down or charging per-transaction fees.

Your eQRP opens a standard business checking account at a bank or credit union of your choice, titled in the name of your plan trust. You have a debit card and checkbook, giving you the ability to write checks, wire funds, or swipe your card to make investments instantly.

Yes! If your spouse performs services for your business and receives compensation, they can participate in the same eQRP plan. Both spouses get their own set of annual contributions — potentially doubling your household’s tax-advantaged investing power to over $140,000 per year combined.

You qualify if you have self-employment income and no full-time W-2 employees (other than your spouse). This covers sole proprietors, single-member LLCs, partnerships, S-corps, and C-corps with no common-law employees working more than 1,000 hours per year.

Yes. As long as your side business has self-employment income and no full-time employees (other than your spouse), you can establish an eQRP for that business. Your W-2 job doesn’t disqualify you, though contribution limits may be affected if you also contribute to your employer’s 401(k).

Part-time employees who work fewer than 1,000 hours per year do not disqualify you. Independent contractors (1099 workers) are not considered employees for this purpose and do not affect your eligibility.

Sole proprietorships, single-member LLCs, multi-member LLCs, partnerships, S-corporations, and C-corporations all qualify — as long as the no-full-time-employee rule is met. The business must generate earned income (not just passive income).

There is no minimum income requirement to establish an eQRP. However, your annual contributions are limited to your earned income from the business. Even a few thousand dollars of self-employment income qualifies you to open the plan and roll over existing retirement funds.

Yes, you can maintain both. However, once you have an employer plan like the eQRP, your ability to deduct traditional IRA contributions may be limited based on your income. Many eQRP owners choose to roll their existing IRAs into the eQRP to consolidate funds and gain checkbook control over those assets too.

You can roll over funds from a traditional IRA, SEP IRA, SIMPLE IRA (after 2 years), old employer 401(k), 403(b), 457(b), Thrift Savings Plan (TSP), pension plans, and most other qualified retirement accounts. The only account that cannot roll into an eQRP is a Roth IRA.

No. A direct (trustee-to-trustee) rollover from a pre-tax account to the eQRP is tax-free and penalty-free. The funds move directly from your old plan to your eQRP bank account without you personally receiving them. There is no taxable event.

Most rollovers complete within 5–15 business days, depending on how quickly your old custodian processes the distribution. Some custodians move faster than others. We guide you through every step and follow up with your old provider to keep things moving.

Generally, you cannot roll over a 401(k) with a current employer while still employed there (unless the plan offers in-service distributions). However, old 401(k) plans from former employers can be rolled over at any time. If your current plan allows in-service rollovers, those funds can also move to the eQRP.

A direct rollover moves funds between different types of retirement accounts (e.g., IRA to 401k). A transfer moves funds between the same type of account (e.g., IRA to IRA). Both are tax-free when done correctly. With the eQRP, most movements from IRAs and old 401(k)s are processed as direct rollovers.

No. Per IRS rules, Roth IRA funds cannot be rolled into a 401(k) plan. However, you can make Roth contributions directly to your eQRP (the plan has a built-in Roth component), and you can roll over a Roth 401(k) from a former employer into the eQRP’s Roth sub-account.

No. There is no dollar limit on rollovers. Whether you have $10,000 or $10 million in an old retirement account, the full balance can be rolled into your eQRP tax-free.

The eQRP can invest in virtually anything the IRS allows, including:

• Real estate (residential, commercial, raw land, fix-and-flip)
• Cryptocurrency (Bitcoin, Ethereum, and other digital assets)
• Precious metals (gold, silver, platinum, palladium)
• Private lending and mortgage notes
• Private equity and private placements
• Tax liens and tax deeds
• Traditional stocks, bonds, and mutual funds
• Commodities, oil, gas, and mineral rights
• Foreign currencies

Absolutely. Real estate is one of the most popular eQRP investments. You can purchase rental properties, commercial buildings, raw land, fix-and-flip projects, and more. The property is titled in the name of your eQRP trust, and all income and expenses flow through the plan. You write a check directly from your eQRP bank account — no custodian delays.

Yes. You can buy Bitcoin, Ethereum, and other cryptocurrencies directly from your eQRP checking account through any exchange. The IRS classifies crypto as property, making it a permissible plan investment. All gains grow tax-deferred (traditional) or tax-free (Roth), which is a massive advantage compared to a taxable brokerage account.

Yes. Your eQRP can purchase IRS-approved precious metals including gold (99.5%+ purity), silver (99.9%+ purity), platinum and palladium (99.95%+ purity). Popular choices include American Gold Eagles, Canadian Maple Leafs, and approved bullion bars. The metals must be stored with an IRS-approved depository — not at your home.

Yes. Your eQRP can originate private loans secured by real estate, vehicles, or other collateral. You set the interest rate, terms, and collateral requirements. The borrower makes payments directly to your eQRP bank account. This is a popular strategy for generating consistent, passive returns inside a tax-advantaged plan.

The IRS prohibits retirement plans from investing in:

• Life insurance
• Collectibles — art, antiques, rugs, gems, stamps, wine, and most coins (certain government-minted coins and approved bullion are exceptions)
• S-corporation stock (by tax code restriction)

Beyond these, virtually everything else is fair game.

Yes. Your eQRP can obtain a non-recourse loan to purchase real estate. With a non-recourse loan, only the property itself serves as collateral — the lender cannot pursue the plan’s other assets. A major advantage of the eQRP (as a 401(k) plan) over a self-directed IRA: leveraged real estate in a 401(k) is exempt from UDFI tax under IRC Section 514(c)(9). This can save you thousands in taxes that an IRA investor would owe.

Yes. Your eQRP can invest in LLCs, LPs, private companies, and startup equity. You can write a check directly from your plan to fund the investment. All returns flow back to the plan tax-deferred or tax-free. Just be sure the company is not owned by a disqualified person (you, your spouse, or lineal family members).

Of course. The eQRP doesn’t limit you to alternatives. You can open a brokerage account in the name of your eQRP trust at Fidelity, Schwab, or any other broker and invest in stocks, ETFs, bonds, and mutual funds alongside your alternative investments.

Yes. Tax liens and tax deed certificates are popular eQRP investments, especially for investors who want secured, high-yield returns. Your eQRP writes a check at auction, and the interest or property comes back to your plan. Checkbook control is critical here since auctions require fast payment.

Checkbook control means you have direct access to your retirement funds through a bank checking account. You can write checks, send wires, or use a debit card to make investments instantly — no custodian approval needed. This is critical for time-sensitive investments like real estate auctions, private deals, and crypto opportunities where delays can mean a lost deal.

With a self-directed IRA, you decide what to invest in, but a custodian must process every transaction. This adds days or weeks of delays and per-transaction fees. With the eQRP’s checkbook control, you skip the custodian entirely. You make the investment decision and execute it yourself, instantly, from your own bank account.

Yes. The IRS allows 401(k) plans to be structured as trusts with the plan participant serving as trustee. This structure has been upheld in Tax Court and is widely used throughout the self-directed retirement industry. Thousands of eQRP holders use checkbook control every day.

No. Checkbook control is for plan investments only. Using plan funds for personal expenses, paying yourself (outside of a proper participant loan), or benefiting a disqualified person is a prohibited transaction that can disqualify your plan. The checking account belongs to the plan, not to you personally.

You can open your eQRP checking account at any bank or credit union that accepts trust accounts. Popular choices include Chase, Bank of America, local credit unions, and online banks. We provide a letter and EIN documentation to make opening the account straightforward.

Key differences:

• Contribution limits: eQRP allows up to $83,250+/year vs. $7,000–$8,000 for an IRA
• Checkbook control: eQRP has direct checkbook control; SDIRAs require a custodian
• UDFI tax exemption: eQRP is exempt from UDFI on leveraged real estate; SDIRAs are not
• Participant loans: eQRP allows borrowing up to $50,000; SDIRAs do not allow loans
• Roth option: eQRP has a built-in Roth component; SDIRA requires a separate account
• Creditor protection: 401(k) plans have unlimited federal creditor protection under ERISA; IRAs have limited, state-dependent protection

The eQRP is a type of solo 401(k), but not all solo 401(k) plans are created equal. The eQRP® plan documents are specifically engineered to maximize your investment flexibility and checkbook control. Many cookie-cutter solo 401(k) providers use restrictive plan documents that limit your investment options or require custodian involvement. The eQRP is built from the ground up for alternative asset investors.

The 401(k) structure (like the eQRP) offers several critical advantages over any IRA: much higher contribution limits, UDFI tax exemption on leveraged real estate, participant loan access, stronger creditor protection under ERISA, and a built-in Roth option. If you qualify for both, the 401(k) is almost always the superior choice for serious alternative asset investors.

Yes. Traditional IRA, SEP IRA, and SIMPLE IRA (after 2 years) balances can be rolled into the eQRP tax-free. This lets you consolidate your retirement funds, eliminate custodian fees, gain checkbook control, and unlock the 401(k)’s UDFI exemption and loan provisions.

A prohibited transaction is any improper use of your plan assets involving a “disqualified person.” Common examples include buying property from yourself or a family member, lending plan money to yourself (outside of a proper participant loan), using plan assets for personal benefit, or hiring your child to manage a plan-owned property. Prohibited transactions can disqualify the entire plan, triggering taxes and penalties on the full balance.

Disqualified persons include:

• You (the plan participant)
• Your spouse
• Your parents, grandparents (ancestors)
• Your children, grandchildren (lineal descendants) and their spouses
• Plan fiduciaries and service providers
• Entities owned 50%+ by any of the above

Notably, siblings, aunts, uncles, and cousins are NOT disqualified persons.

No. Plan-owned property cannot be used personally by you or any disqualified person. You cannot live in it, vacation in it, or use it as an office. It must be held strictly as a plan investment. Violating this rule is a prohibited transaction.

No. You cannot perform “sweat equity” on plan-owned property. Doing maintenance, renovations, or management work on a property your plan owns is considered providing services to the plan and could be a prohibited transaction. The plan must hire unrelated third parties for all property management and repairs.

UBIT (Unrelated Business Income Tax) applies when a tax-exempt account earns active business income (not passive investment income). For example, if your plan operates an active business rather than making passive investments, that income could be subject to UBIT. The threshold for filing is $1,000 in gross unrelated business income. Passive income from rentals, dividends, interest, and capital gains is generally not subject to UBIT.

UDFI (Unrelated Debt-Financed Income) is a tax on the portion of income attributable to debt used to acquire an investment. If a self-directed IRA uses a mortgage to buy real estate, the leveraged portion of income is subject to UDFI tax — which can be as high as 37%. The eQRP, as a 401(k) plan, is exempt from UDFI under IRC Section 514(c)(9). This is one of the biggest advantages of the eQRP over any IRA and can save tens of thousands of dollars on leveraged real estate deals.

If your total plan balance reaches $250,000 or more, you must file IRS Form 5500-EZ annually. Below $250,000, no filing is required. The form is straightforward and we provide guidance and support to help you complete it.

A prohibited transaction can result in the disqualification of the plan, which means the entire balance could be treated as a taxable distribution. Depending on your age, a 10% early withdrawal penalty may also apply. That’s why eQRP provides education and ongoing support to help you stay compliant — you don’t have to figure out the rules alone.

Yes. Your eQRP can partner with unrelated third parties on investments. For example, your eQRP could own 60% of a rental property and a business partner owns 40%. The key rule: none of the partners can be disqualified persons (you, your spouse, or lineal family members).

There’s no need. A 1031 exchange is used to defer capital gains tax when selling and buying real estate. Since the eQRP is already tax-deferred (traditional) or tax-free (Roth), there’s no capital gains tax to defer. You can sell one property and buy another freely within the plan without needing a 1031 exchange.

Yes! The eQRP allows participant loans of up to $50,000 or 50% of your vested plan balance, whichever is less. You borrow from your own plan, pay yourself interest, and can use the funds for any purpose — personal expenses, a down payment on a home, emergency needs, or starting a business. This is a feature that self-directed IRAs do not offer.

Participant loans must be repaid within 5 years with level amortization (equal quarterly payments at minimum). The interest rate is typically Prime + 1%. The interest you pay goes back into your own plan — you’re essentially paying interest to yourself. Loans for purchasing a primary residence may have a longer repayment term.

You can take penalty-free distributions starting at age 59½. Distributions from the pre-tax portion are taxed as ordinary income. Distributions from the Roth portion (if contributions were held for 5+ years) are completely tax-free. Early distributions before 59½ are generally subject to a 10% penalty plus income tax, with some exceptions.

Yes. Under SECURE Act 2.0, RMDs begin at age 73 (rising to 75 in 2033). However, if you are still working and the plan is still active, you may be able to delay RMDs from your eQRP until you actually retire. Roth 401(k) accounts in employer plans are no longer subject to RMDs starting in 2024.

If you hire a full-time employee (working 1,000+ hours/year), you must either include them in the plan or transition to a different plan structure. We help you navigate this transition. Your plan assets remain protected — nothing is lost or penalized.

For 2025/2026, the combined employee + employer contribution limit is up to $83,250 per year. The employee deferral portion is $23,500 ($31,000 if 50+), and the employer profit-sharing portion can be up to 25% of compensation. These are among the highest contribution limits of any retirement plan.

Contact us for current pricing. The eQRP has a one-time setup fee and an annual maintenance fee. There are no per-transaction fees, no asset-based fees, and no hidden charges. Unlike custodian-based plans that charge you every time you make an investment, the eQRP cost stays flat regardless of how many investments you make or how large your balance grows.

No. This is one of the biggest advantages of the eQRP structure. Because you have checkbook control and there is no custodian processing your transactions, you never pay per-transaction fees. Make one investment or one hundred — the cost is the same.

Your eQRP setup includes: custom plan documents, plan trust agreement, IRS employer identification number (EIN), a dedicated bank account with checkbook control, banking documentation and letters, rollover assistance, compliance guide, and access to our education and support team. Everything you need to be up and running in as little as 24 hours.

No. The eQRP uses flat-fee pricing. Whether your plan holds $10,000 or $10 million, the fee stays the same. Many custodian-based plans charge asset-based fees that grow as your balance increases — which punishes you for being a successful investor.

Every eQRP owner gets access to our support team for compliance questions, investment structuring help, annual filing guidance (Form 5500-EZ when required), and general plan administration questions. You’re never left to figure it out alone.