negotiating $ and benefits as contractor

[Anonymous]

Considering taking on a long term consultant job that would mean substantial hours but a bit less than FT. Comfortable working as contractor and being paid based on hourly rate b/c that is the way my industry works. But, I'm wondering if I should be asking for any type of benefits in addition to the hourly rate. I know it would be a longshot, but maybe I should. Has anyone had luck getting a 401k contrib as a contractor (or any other benefits for that matter)?

[Anonymous]

No, that's the point of a contractor. You are paid hourly a much higher rate than you would be if you were an employee because benefits aren't included.

[Anonymous]

Getting benefits negates being a contractor - it's a key factor the IRS looks to when deciding if you're properly classified as an employee or contractor.

You should look into setting up your own SEP-IRA, SIMPLE IRS or 401(k) as the sole proprietor of your own consulting business; the plans all have slightly different limits & rules. As a self-employed individual, you can set aside quite a bit of pre-tax money through an "employer" contribution (i.e. you're the employer) plus as your own employee deferral. The employer side contribution directly reduces your business taxable income as a sole proprietor of your own business. Check out the IRS and some financial sites (e.g. Vanguard, Fidelity) for details on these plans.