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ok, since I am posting this it is questionable as to whether it is humor or not, certainly as questionable if not more so than any posts on the pension board I make. warning: read at your own risk, maybe best on an empty stomach. ............................................ Fred was in the fertilized egg business. He had several hundred young' pullets,' and ten roosters to fertilize the eggs. He kept records, and any rooster not performing went into the soup pot and was replaced. This took a lot of time, so he bought some tiny bells and attached them to his roosters. Each bell had a different tone, so he could tell from a distance, which rooster was performing. Now, he could sit on the porch and fill out an efficiency report by just listening to the bells. Fred's favorite rooster, old Butch, was a very fine specimen, but this morning he noticed old Butch's bell hadn't rung at all! When he went to investigate, he saw the other roosters were busy chasing pullets, bells-a-ringing, but the pullets, hearing the roosters coming, would run for cover. To Fred's amazement, old Butch had his bell in his beak, so it couldn't ring. He'd sneak up on a pullet, do his job and walk on to the next one. Fred was so proud of old Butch, he entered him in the Brisbane City Show and he became an overnight sensation among the judges. The result was the judges not only awarded old Butch the "No Bell Piece Prize," but they also awarded him the "Pulletsurprise" as well. Clearly old Butch was a politician in the making. Who else but a politician could figure out how to win two of the most coveted awards on our planet by being the best at sneaking up on the unsuspecting populace and screwing them when they weren't paying attention. Vote carefully in every election, you can't always hear the bells.

That makes less sense and doesn't agree with the clarification in the original post. I think you give 1099s to your contractors, right? The bottom line is, you can make retirement plan contributions based on your compensation. For this purpose, that would be your W-2s. If your pay is low, you can maximize contributions by setting up a SIMPLE and deferring 100% of pay, up to $12,000, plus $2,500 if over age 50 (if you don't participate in a 401(k) elsewhere and maximize those contributions). That involves withholding contributions from your pay. Otherwise the business can establish a SEP and contribute up to 25% of pay as an employer contribution, after the end of the year.

That would not be simple, would it?