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aszablya
New Member

As a W2 contractor with a vendor company, can I contribute to my own SEP IRA?

Hello, I am in an interesting gray area of my retirement contribution. I am on a 6-month contract with a vendor that does not offer a retirement option. However, I make too much income for a traditional/Roth IRA and as such had set up my own SEP-IRA for myself.

 

As a w2 contractor with this vendor company, I wanted to know if I was allowed to contribute to my own managed SEP-IRA during this 6 month period; Where I am working through a vendor company rather than through my own independent contracting. The details I have googled are unclear with regards to this, but I would like to contribute to it and not lose out on valuable vesting time for my nestegg.

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2 Replies

As a W2 contractor with a vendor company, can I contribute to my own SEP IRA?

STOP using the term "W2 Contractor" as there is no such thing just like there is no such thing as a "tiger elephant".

 

If you get a W-2 then you are an employee and cannot open a SEP IRA at all.   

 

However if you are a contractor that gets a 1099-NEC and you report your income on a Sch C then a SEP IRA is possible.  

aszablya
New Member

As a W2 contractor with a vendor company, can I contribute to my own SEP IRA?

@Critter-3  That is the thing, I already have an opened and established SEP IRA. I want to know if I can keep contributing to it with the W2 income I receive. 

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