Reply to DH 401K Maxed Out, What about me?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]actually, i think OP could get into trouble potentially if she takes advantage of an SEP or other self-employed deductible retirement program that otherwise wouldn't be available to a W-2 employee whose employer doesn't offer a 401(k).

chances of her getting caught are probably slim to none, but still a possibility. [/quote]

She didn't chose how she is paid, there is not much for her to "get caught" on. If she gets an FEIN, uses the FEIN in her interactions with the employer rather than her SS, and operates as a self employed person (paying self employment taxes, reporting on schedule C), I strongly doubt the IRS would have any issue with her using self employed retirement plans. Any liability here is with the employer. [/quote]

I wouldn't bank on that. If she isn't a 1099, then she should not be eligible for an SEP or any other kind of self-employed retirement benefit.  I have to imagine the IRS could/would make her take the money out of the plan and count the contributions as taxable income -- the IRS is losing out otherwise. [/quote]

She said she received 1099 wages in the initial post. It's called reading. Top to bottom, left to right. A group of words together is called a sentence.   Take Tylenol for any headaches, midol for any cramps.[/quote]

This is OP.  Yes, I did say that I received 1099 wages BUT that's because I assumed I was a 1099 employee.  This is my first time working in this manner, as I have always been a W2 employee. When my boss hired me he said "you will be 1099", and I didn't give it further thought because I assumed, as many do, that all that 1099 meant was that I would be paid GROSS and then pay my taxes directly to the IRS every quarter vs him paying me NET via payroll and have my taxes paid that way.  After further extensive research and a few key comments from other PPs it is very clear to me that I have been misclassified by my employer - unintentionally I believe.  Turns out I have been paying self employment taxes as part of my quarterly taxes.  This all came about due to my question of how much I could stash away in a 401K or IRA if my DH was already max funding.

I just have to decide how to handle this.  I intend to approach my employer about this - not to get him in trouble but so that he can classify me correctly going forward.  I will not ask him to go back retroactively (I've only paid one quarter so far).  I don't want the IRS in my business just because he didn't do something right and I don't want to pay more taxes than I should be! [/quote]

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