B21 Posted March 13, 2013 Posted March 13, 2013 Is it permitted for a full time life insurance agent who is classified as a statutory employee of the life insurance company that employs him & receives a W2 as a statutory employee consider this as earned income for a SEP plan he wants to establish as a sole-proprietor? My initial response is yes because of the exception for life insurance agents that treats their income as self-employment income. Normally, W2 income is not considered earned income for self-employment.
PensionPro Posted March 13, 2013 Posted March 13, 2013 No he can not set up a plan for himself. PensionPro, CPC, TGPC
masteff Posted March 13, 2013 Posted March 13, 2013 http://benefitslink.com/boards/index.php?/topic/9383-statutory-employee-issue/ Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
B21 Posted March 14, 2013 Author Posted March 14, 2013 See link for topic posted in March 2011. Am I misinterpreting the earlier response? http://benefitslink.com/boards/index.php?/topic/48135-statutory-employee/
masteff Posted March 14, 2013 Posted March 14, 2013 The thread you linked fails to address how the exception would actually apply to an insurance agent. You can't extract any conclusion from it what so ever as applies to your situtation. Whereas you can extract a conclusion from PensionPro's statement and from the 3rd post in the thread that I linked. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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