can retention bonus from “non-employer” fund sep-i
A local hospital paid me not to leave, but they are not my formal employer. They do, however, pay a state entity for my services, but the state entity is my employer of record for income tax purposes. Can I count this bonus as outside income and fund a sep-ira?
Permalink Submitted by Denise Appleby on Sun, 2008-01-27 15:20
Sounds like you have some kind of [url=http://www.retirementdictionary.com/Leased%20Employee.htm%5Dleased-employe…? I am not quite sure.
You can fund a SEP IRA in only two capacities:
1. Your employer makes a SEP contribution ( based on your compensation received from your employer), to your SEP IRA set up under your employer’s SEP Plan
2. You establish and fund the SEP based on earnings from your own business. In this case, the SEP contributions would be based on income you receive from your business.
It does not appear that you can treat the bonus as self-employment income, which would mean that you cannot establish and fund a SEP based on that bonus.