Updated about 3 years ago on . Most recent reply
Contributing to SEP-IRA as a 1099 Employee
I am a new 1099 employee working part-time through a contracting company. They pay me directly as an individual. In order to minimize my taxable income, I would like to contribute to a SEP-IRA. Does anyone have experience doing this? Is this something I can do directly or do the contributions need to be made by the company I am doing contracting work through? I see there is also a requirement you need to have worked 3 of the last 5 years. Is this something that can be worked around? Previous to this, I was a W-2 employee for 10 years and have recently switched to 1099 income.
Most Popular Reply
If you are interested in real estate and alternative investing you might be better off setting up a self-directed solo 401k plan. Depending on your age, income and investment objectives, that might be a better option than a SEP. I was not particularly a fan of the SEP for many reasons pre-SECURE Act 2.0, but it is been improved with the legislation. I am not aware though if the custodians are up to speed yet with the changes. Feel free to connect and message me as I might be able to help if I know more about your situation.