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1099 and 403b

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  • 1099 and 403b

    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?

  • #2




    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.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      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.

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