The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: no retirement plan via employer Date:  1/12/2005  1:30 PM
Author:  pekinrobin Number:  43996 of 88804

Does that mean that your income is now 1099 instead of W-2, so now you would be using Schedule C for self-employment income

Yeah, the phrasing bothers me too. I think this person doesn't realize that, as an independent contractor, he or she is technically self-employed and is required to pay double Social Security tax, to file quarterly income tax estimates, and to provide his or her own benefits such as health insurance. Oh, and of course, there are no more paid holidays or vacations.

The retirement plan is the least of the grief.

I would never advise anyone to switch from a real job to being a contractor if there was any option, because if they appear to be receiving about the same income, the contractor is actually taking a HUGE hit in income.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us