1099 and 403b

[poojitha18]

Hi all

I was hoping someone could help with this issue.. I just finished working for my previous employer and am now on a casual contract with them. This means that I am working as an independent contractor.

All my benefits have changed but they are still matching my contribution to a 403b

How does this affect my self employed status? Can I be self employed and have this benefit?

[jfoxcpacfp]

poojitha18 wrote:

Hi all

I was hoping someone could help with this issue.. I just finished working for my previous employer and am now on a casual contract with them. This means that I am working as an independent contractor.

All my benefits have changed but they are still matching my contribution to a 403b

How does this affect my self employed status? Can I be self employed and have this benefit?

Click to expand...

You may be classified as a statutory employee. It would be helpful to know how your employer is reporting your 403b contributions, if at all.

[spiritrider]

There are two separate but interrelated issues. Qualification of the 403b plan and employee vs. Independent Contractor (IC) status.

You can be a IC and be covered by a 457b plan. This is not permitted for a 403b or 401k plan. This jeopardizes the qualified status of the plan. In fact even rehiring an employee after retirement can be a potential minefield for a qualified plan.

Then as already pointed out an immediate re-engagement of a previous employee looks a lot like employment. It is not impossible to restructure such an engagement to meet IRS scrutiny, but you need a detailed contract with a clearly specific client/IC relationship.