Contributing to SEP-IRA as a 1099 Employee

[Marie J Miller]

I am a new 1099 employee working part-time through a contracting company. They pay me directly as an individual. In order to minimize my taxable income, I would like to contribute to a SEP-IRA. Does anyone have experience doing this? Is this something I can do directly or do the contributions need to be made by the company I am doing contracting work through? I see there is also a requirement you need to have worked 3 of the last 5 years. Is this something that can be worked around? Previous to this, I was a W-2 employee for 10 years and have recently switched to 1099 income.

[Jeff Nash]

If you are interested in real estate and alternative investing you might be better off setting up a self-directed solo 401k plan.  Depending on your age, income and investment objectives, that might be a better option than a SEP.  I was not particularly a fan of the SEP for many reasons pre-SECURE Act 2.0, but it is been improved with the legislation. I am not aware though if the custodians are up to speed yet with the changes. Feel free to connect and message me as I might be able to help if I know more about your situation.