© 2011 QRP & Associates. All Rights Reserved.
Advantages of a Qualified Plan vs. an IRA
QUALIFIED PLAN
IRA
Can you borrow from your retirement account?
Debt financing on real estate without adverse tax consequences?
Deductible contribution limit for 2011
Protection from creditors?
Ability to purchase life insurances?
Ability to be your own trustee, write/sign checks and directly control your plan assets?
Employee contribution (elective deferrals)
Catch up contributions over age 50
Are distributions allowed for hardships?
Stockholder in a Sub Chapter S Corporation
Yes, permitted up to $50,000 or 1/2 vested account
Not Allowed
Allowed
Not Allowed
$49,000 for 401(k), profit sharing and $195,000 for defined benefit plan
Only $5,000
Yes, ERISA provides protection
No ERISA protection
Yes
Not Allowed
Yes
Not Allowed
$16,500
Not Allowed
$5,500
$1,000
Yes
Not Allowed
Yes
No
QRP & Associates
4168 Douglas Blvd., Ste. 300
Granite Bay, CA 95746
4381 W. Flamingo Rd #38307
Las Vegas, NV 89103
169 11th Street
San Francisco, CA 94103
