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Keeping a Current Connection Before Reaching Retirement Age
(Posted April 4, 2004)
Question 421: I am 53 years old, with 34 years of service. I am looking at terminating Railroad employment before I reach age 60. If my wife owned a business and I was to work for her as a self-employed contractor, would that be allowable under the current connection restrictions? Does it make any difference if the business is incorporated? I have read Q&As 219, 377 and 408.
Answer: The best thing to do is to submit your self-employment plans to the Railroad Retirement Board (RRB) and ask them for an opinion before you begin.
A person who calls himself "self-employed" but only provides services to one person often has been ruled by the RRB to be in "regular employment" rather than self-employment. Also, providing those services for a family member (or to a corporation owned by a family member) does not help establish your self-employed status.
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