1099 Compensation

[emmetttrudy]

Is 1099 compensation includable for retirement plan purposes? Plan Doc defines comp as W-2. what if employee was independent contractor and then hired full time midway through the year? do you only take into account his full time W-2 compensation?

[Bird]

W-2 only. Whether the "independent contractor" arrangement was accurate or not is another question. Also, if the plan has an eligibility waiting period, then that should start on the date of hire.

[J Simmons]

I agree with Bird. For clarification, by 'date of hire' I think Bird is referring to the date the worker began working as a W-2 payrolled employee, not when he/she began providing services as an 'independent contractor'.