Affiliated Service Group

[Guest Randel Renegar]

I have two insurance agents that want to adopt a defined benefit plan. One agent works in a management postion for the agency and participates in the agencies 401(k) plan. In addition, he receives 1099 income, pays social security and medicare, and files a schedule "C". The other agent receives only 1099 income. Can either one of them adopt a defined benefit plan?

[mbozek]

The clients need to consult a tax advisor to determine their status under the tax law. Some insurance company agents are deemed statutory employees under the tax law not independent contractors who may not be able to establish their own qualified plans. I dont know if statutory employees receive 1099s or W-2s.