Some help is greatly appreciated: I am considering an individual 401(k) plan that I believes has a profit sharing component to it. I am getting really frustrated and am wondering if I am getting my chain yanked.
Company 1 is saying they have a "QRP". They say is it not a Solo-K, but everything they talk about screams "401(k)". They tell me that a Solo-K does not fall under ERISA (which I agree with based on everything I have read), but their QRP does. They say it has judgement protection from creditors and falls under ERISA. My questions:
1) How can any plan with only one participant (the owner...me) fall under ERISA and receive protection from creditors? I thought ERISA was intended to protect participants in employer plans?? If it does fall under ERISA, is it because the plan has profit sharing as well?
2) While clear with their marketing, what would/could make a "QRP" of Solo-K fall under ERISA and have asset protection?
3) An obvious question...my understanding that a plan that falls under ERISA would file an annual report to the DOL? Would I have an exemption to this requirement?
Any assistance is appreciated. To me it is the difference between spending $3,000 on this "QRP" vs a much lower fee for a Solo-K. Again, the promoters are saying it is NOT a 401(k)...but I am a big believer that is it looks, smells and acts like a 401(k)...it is a 401(k).
Thanks for any and all responses, in advance.
