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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.
    Our passion is protecting clients and others from predatory and ignorant 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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