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Has anyone had any experience with a statutory employee, and particularly one who wants to contribute the maximum to a SEP (not employer sponsored)?

klese
Level 1
 
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3 Comments 3
Terry53029
Level 14
Level 14

A  statutory employee can contribute to a SEP, but it must be setup by his employer

Here is a link: https://www.irs.gov/pub/irs-news/fs-08-24.pdf

klese
Level 1

Well the article you reference certainly seems to answer the question.  

I spent a half hour on the phone with the IRS today who told me that my client could contribute, and he referenced the "over 21, made $600, etc."  When I said I believed that referred to an employer sponsored plan,  he said he didn't want to argue semantics.

That's the expert.

Thank you!

 

 

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albertng
Level 2

If a statutory employee received W-2 from her employer and those income is recorded on her Schedule C, would those Schedule C income be considered self-employment earnings for making maximum contribution to a SEP IRA, and the plan was set up under the employee's name?

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