Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted May 3, 2021 9:34:14 PM

Can I make a large SEP-IRA contribution using W-2 income? I'm an independent contractor and it's from a NQSO. I paid FICA taxes. Boxes 11,12 are empty on my W-2.

Presumably, I would adjust Non-Farm Self-Employment Income to my W-2 amount. Any insight on this would be hugely appreciated.

0 3 2696
3 Replies
Expert Alumni
May 4, 2021 2:35:46 PM

You can only make a SEP-IRA contribution through your employer. If your income is reported on a W-2 form, only the company that issued the W-2 could contribute money to a SEP-IRA set up on your behalf. You may be able to make a deductible contribution to your own IRA, however.

Level 2
May 4, 2021 9:18:10 PM

Thanks for the thoughtful answer. It's only some of my income. I have other income. 

 

How about a Solo 401k then? I guess what I'm not getting past is that I am not employed by the company. Have't been for years. Why can't I contribute as my own employer? 

Expert Alumni
May 6, 2021 8:57:34 PM

The Small Business and Self-Employed Tax Center includes Retirement Plans. If you have positive business income you can contribute. Choose a plan that suits your business and go for it! Both links have great information.